Plunge in the Weekly Oil Supplies Sent Crude Soaring
August 19, 2009 by Trace
Filed under Trading in the Market
The metals reversed course after an unexpected plunge in the Weekly Oil Supplies sent Crude soaring by $2.56 per barrel lifting the metals in the process. This week’s Oil Inventories clocked in with a decline of 8.4 million barrels. Needless to say traders scrambled to cover their short positions and go long the entire energy complex. Last on Crude $71.75.
The surge in Oil put pressure on the Dollar as well. The Euro is currently up 1.25 cents against our Greenback at $1.4243.
Stocks led by the energy sector bounced from an 80 point Dow loss to an 83 point rise on the day. Traders rationalize the drop in Oil supplies as meaning greater demand. Greater demand implies a stronger economy. Maybe!
As for our metals; Silver ended with a loss of 15 cents at $13.85. Gold erased it’s losses ending the day $3.00 higher at $941.00. Palladium finished the day unchanged at $275.00. Platinum down $2.00 to close at $1230.00. Volume was moderately active.
Traders will now ponder tonight’s Asian open hoping to see the some stabilization in the their markets. As for tomorrow the economic calendar resumes with the Weekly Initial Jobless Claims, Leading Economic indicators, and the Philadelphia Fed Index of Manufacturing. At a glance the early estimates are calling for flat to slightly improving numbers.
