Oil Nears $66 Again, Will It Breakout?
Crude Oil was little changed today,
still holding near $66 per barrel. With the end of the summer driving
season in sight and the assumption that higher prices will curtail demand,
gasoline prices seem unable to move higher. Despite that view, the markets have
failed to selloff and remain near all-time highs.
The American Petroleum Institute reported that 9.28 Mln
barrels per day were consumed in the US during July. That figure is expected to
decline after the Labor Day holiday. Iraqi exports resumed today after the
temporary halt shut down. The cause of yesterday’s power outage was sabotage but
the news failed to ignite a rally.
October Crude Oil +0.15%, Heating Oil +0.11% and
Harbor Unleaded Gas +0.43% closed higher but Natural Gas +1.10%
led the way.
The unexpected decline in US Home Sales pushed treasuries
higher. The 10yr T-Note yield fell to its lowest level in over a month. Prices
rose across the yield curve, led by the short end – 10yr T-Note +0.11%,
5yr T-Note +0.12% and 2yr T-Note +0.06%.
In the forex markets, the Euro was little changed vs. the US
Dollar despite the German ZEW report which showed that investor confidence in
Germany rose to a 17-month high.
Among the softs, Cocoa -0.42%, Sugar -0.10% and
Frozen Orange Juice -2.85% closed lower. Cotton +0.80%, Lumber
+0.61% and Coffee +1.99% closed higher. The grains were also mixed with
Corn -0.88% and Wheat -1.41% closed down, while Soybeans +0.53% closed up.
The metals were higher except for Silver -1.30%.
Gold +0.29%, Copper +0.12%, Platinum +0.56% and Palladium
1.81%.
Economic News
Store Sales:
W/W Change: Actual -0.3%
Existing Home Sales:
Actual 7.160 M Consensus 7.250 M
State Street Investor Confidence Index:
Actual 84.8
Ashton Dorkins