Hurricane Watch!
Factory orders rose 2.9% in May, in-line with expectations.
Crude was higher on the talk that Tropical Storm Cindy may
disrupt drilling in the Gulf of Mexico. The storm is expected to make land late
tonight or early tomorrow. In September, Hurricane Ivan damaged production
facilities in the Gulf, cutting 43.8 million barrels of oil production and 172.3
cubic feet of natural gas output. Right behind Cindy is tropical Storm Dennis,
which may be upgraded to a hurricane later in the week.
November orange juice closed limit up on the storms news as
well.
U.S. crude oil inventories are close to their highest level for six years.
Distillate stocks, however–including high-demand fuels such as diesel and
heating oil–are at the lower half of the average range; raising doubts about
refiners’ ability to meet peak demand in the fourth quarter.
Brice Wightman
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