Oil and Gas futures rally after EIA report
Oil and gas inventories fell sharply
after the first week’s EIA report since hurricane Katrina was released.
The
EIA report (story)
revealed that crude oil inventories fell -6.4 M barrels, from 315 M barrels last
week. Gasoline inventories fell -4.3 M barrels, continuing the recent down
trend. Crude oil inventories are 13.1% higher than a year ago but gasoline
inventories are 8.6% lower than last year.
The US Minerals Management Service
Evacuation and
Production Shut-In Statistics released today showed that despite more
platforms and rigs coming back on-line, crude oil production lost rose to 60.12%
(from 57.37% yesterday). Gas production lost fell to 40.20% from 40.37%
yesterday. With the numbers stabilizing around current levels the past few days
concerns are mounting that the region may not be able to increase capacity much
further in the coming weeks.
Adding to concerns was the Venezuelan Oil Minister Rafael
Ramirez, who stated that OPEC is producing at maximum capacity and can do little
to ease high prices.
Natural Gas +1.30%, Harbor Unleaded Gas +0.66%,
and Crude Oil +0.19% closed higher. Heating Oil -1.67% closed
lower.
Initial jobless
claims had little impact on US treasuries (story)
or the US dollar. Bonds declined while the dollar rallied.
Coffee +1.21% and Cocoa +0.90% rose among the
softs, while Lumber -2.96%, Cotton -1.66% and Frozen Orange
Juice -1.31% fell. In the grains, Soybeans -0.70% and Corn
-0.35% closed down but Wheat +1.49% closed up.
The whole livestock group closed higher, led by Feeder
Cattle +1.56%, Lean Hogs +1.41%, Pork Bellies +1.34% and
Live Cattle +0.63%.
Metals were mixed, Copper -1.73% and Silver
-1.26% closed lower, Palladium +0.89%, Platinum +0.50% and Gold
+0.38% closed higher.
Economic News
Jobless Claims:
New Claims – Actual 319 K Consensus 315 K
Wholesale Trade:
Inventories, M/M Change – Actual 0.1%
EIA Petroleum Status Report:
Crude Oil Inventories, W/W Change – Actual -6.4 M Barrels
Gasoline Inventories, W/W Change – Actual -4.3 M Barrels
Consumer Credit:
M/M Change – Actual $4.4 B Consensus 9.8 B
Bank of England
Keeps rates unchanged at 4.5%
Ashton Dorkins