Unleaded Gas Rallies After Inventory Data

Crude Oil inventories rose, pushing
the price above $60.
However, Unleaded Gasoline was the biggest
percentage gainer after a fall in Gasoline inventories. Unleaded Gasoline has
staged a sharp 2-day rally.

A number of economic reports were released today, along with
the rise in Crude Oil inventories

(report),
Jobless Claims rose less than expected (report),
Existing Home Sales fell more than expected (report)
and the Chicago PMI number showed continued expansion in the Midwest (report).

The news sent Treasuries slightly higher,
inverting the yield curve with 2yr T-Notes yielding more than 10yr T-Notes. The
US Dollar was virtualy unchaged versus both the Euro and Yen.

Chart courtesy of FutureSource.com

Cocoa hit its highest level since early September
today.

Chart courtesy of FutureSource.com

Orange Juice has been a strong performer in 2005, the recent correction may
have ended too looking at the strength of today’s rally.

Chart courtesy of FutureSource.com


Economic
News

Initial Jobless Claims Up 3,000 To 322,000 (report).

Existing Home Sales Down 1.7% In Nov. To Rate Of 6.97 Mln. Units (report).

Chicago PMI At 61.5 For Dec. (report).

EIA: Crude Oil Inventories Up 100,000 Barrels; Gasoline Inventories Down 1.2
Mln. Barrels (report).

ICI – $21 Bln. Flows Into Stock Mutual Funds In November Vs. $6 Bln. In
October

Ashton Dorkins

ashtond@tradingmarkets.com


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