Oil Closes at Record Highs, Here’s Why
Continued strong growth in China and
the US was the message from today’s economic data, putting more
pressure on tight energy supplies. Factory orders and consumer spending
increased, showing no signs the economy was slowing.
Crude Oil +0.52% closed at the highest level since
trading began in 1983, prices settled at $61.89 after hitting a record intraday
high yesterday. Natural Gas +2.75% led the energy sector again
today, closing at a 9-month high. Natural Gas was highlighted in the
TradingMarkets.com Momentum 5 List last night.
Coffee +4.56% was the biggest mover in the commodity
markets today. Fears that dry weather in Brazil would shrink this year’s crop
were helping drive prices higher, Brazil is the world’s largest producer. Coffee
prices are up over 60% in the past year.
Cocoa +0.94% closed at a new 5-week high, as no early
resolution appeared in sight for the Ivory Coast peace process. Sugar
+1.31% continued its impressive run since bottoming in May. Sugar was
highlighted in
TradingMarkets.com Momentum 5 List last night.
The Soybean complex led the grains higher today. Soybeans
+2.47%, Soybean Oil +3.72% and Soybean Meal +1.66%.
Economic News
Store Sales W/W Change – Actual 0.9%
Personal Income M/M Change – Actual 0.5% Consensus 0.4%
Consumer Spending M/M Change – Actual 0.8% Consensus 0.8%
Factory Orders M/M Change – Actual 1.0% Consensus 1.0%
Ashton Dorkins