Saudi Attacks Send Crude Oil Higher
The Department of Commerce
reported that Durable Goods Orders fell sharply in January
(report).
The drop was much larger than anticipated and the worst in more than 5-years.
Treasuries closed lower on the session and the week.
Yields on the 5yr T-note hit the highest level since April 02, while the yield
on the 2yr T-note hit the highest level in 5-years.
The Dollar rose versus the Euro and British Pound but today’s biggest gain was
versus the Swiss Franc. The Swiss Franc also suffered a big down day versus the
Yen. While the Yen posted solid gains versus all the majors. FOREX traders should check out TradingMarkets
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In the energies, Crude Oil, Unleaded Gas and Heating Oil spiked
higher but Natural Gas fell sharply. Crude Oil jumped more than $2 after two
suicide bombers attacked the Abqaiq oil facility in Saudi Arabia. The facility
is the world’s largest, processing about 7% of global supply. Coupled with the
situation in Nigeria it’s clear that geopolitical tension continues to play a
major role in energy prices.
The news sent Gold more than $10 higher.
In the softs, only Orange Juice and Lumber closed +/- 1%. Wheat was the only
mover in the grains, rising more than 2%. In the meats, Pork Bellies jumped
2.53%.
Durable Goods Orders Down 10.2% For Jan.; Ex-Trans. Up 0.6% (report).
Ashton Dorkins
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