Oil and Gas prices spike higher, here’s why
Energy prices
soared today as Tropical Storm Rita neared hurricane strength over the central
Bahamas. The National Hurricane Center’s latest public advisory
report shows a hurricane watch in effect for South Florida. The projected
course is shown in this
Strike Probabilities chart.
Today’s
report by the US Minerals Management Service
showed Shut-in oil production is equivalent to
55.84% of the daily oil production, shut-in gas production is equivalent to
33.75% of the daily gas production in the Gulf Of Mexico. A slight improvement
from Friday’s numbers.
Natural Gas +11.68% was the
largest percentage gainer, followed by Heating Oil +10.13%, Harbor
Unleaded Gas +7.35% and Crude Oil +6.58%.
Rising energy prices all drove US
treasuries higher, especially shorter maturities.
10yr T-Note +0.14%, 5yr T-Note +0.12% and 2yr T-Note +0.08%.
The major grain contracts closed lower, Soybeans +0.83%,
Wheat -1.23% and Corn
-0.45%.
The softs closed mixed, Coffee -4.21%, Lumber
+0.93%,
Cotton +3.68%, Frozen Orange Juice +2.90% and Cocoa
-1.01%.
Among the livestock group, Lean Hogs +0.52%, Feeder
Cattle +0.46% and Live Cattle +0.14% closed higher. Pork Bellies
-0.55% closed lower.
The metals closed significantly higher today on heightened
inflation concerns. Gold
+1.53%, Silver +1.51%, Palladium +6.07%, Platinum +1.01%
and Copper +3.86%.
Economic News
No economic data released today
Ashton Dorkins