Crude Drops $3.85 Per Barrel – USD Explodes to the Upside

The metals complex closed broadly lower today led by an almost $4.00 decline in the price of Oil. Given the inverse correlation between the U.S Dollar and the price of Oil; the Greenback exploded to the upside with the Euro losing about 1.5 cents against our Dollar. Last on the Euro $1.4020.

Energy traders got hit by a double whammy today with speculators continuing to exit the markets fearing new potential treading restrictions. The selling pressure was compounded by a much larger than expected spike in the Weekly Oil Inventories. Crude supplies surged 5.1 million barrels causing an acceleration in selling. Last trade $63.38 down $3.85 per barrel.

The commodities complex including the metals turned sharply lower in sympathy. Silver was off 46 cents at $13.32. Gold lost an even $10.00 closing at $928.00. Palladium finished at $255.00 down $7.00. Platinum closed at $1173.00 off $26.00. Volume was lighter than the price declines indicated.

In the stock market a continuous stream of under performing corporate earnings and a disappointing Durable Goods Report has the Dow lower by 80 points with two hours left in the day. Durable Goods clocked in with a decline of 2.5%; substantially worse than the estimated decline of .6%. Furthermore; a luke warm reception to today’s Treasury note auction served to keep pressure on stocks. When trading gets underway tomorrow, participants will have the Initial Weekly Jobless Claims to help steer trading direction.