Here’s What One Oil Minister Sees For Crude
Crude lost almost 2% on the day to close at the lowest
level in four sessions.
Crude inventories fell -1.6 million barrels; gasoline stocks rose 200K
barrels; distillates saw a build of 1.3 million barrels. All were in-line.
Overall crude demand rose 1.7% from a year ago; gas demand rose 2.5% while
distillate demand rose 6.9%. Crude Oil was -0.84 at 58.20
Bush pushed for the U.S. to resume building nuclear
power plants, saying it is much safer than it was in the 1970s, when new
construction was stopped on new plants. The Algerian oil minister said he
thinks oil won’t trade below $50 this year.
Pimco’s Bill Gross says the Fed may start cutting rates again. At
an investment conference yesterday, Mr. Gross said he expects rates to fall by
year-end. 10-year notes fell below 4%–to a near 14-month low–finishing
at 3.942%. Traders are concerned that high crude oil prices may be slowing the
global economy. The 1-year is referenced for corporate borrowing and mortgages.
The Federal Reserves meets today and tomorrow.
Orange juice made its highest close in 2 months
on concerns over the spread of citrus canker and the amount of damage from last
year’s hurricanes.
Brice Wightman
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