Wednesday, September 7, 2011

September 8, 2011

There's a new storm brewing in the Gulf and pushing crude prices up 4% as production is halted for safety reasons once again after the shut downs of last week due to Tropical Storm Lee. These expected productions shortfalls caused traders to buy oil futures and this paralleled the rise in equities as the dollar fell. These prices increased despite the continuing worries about the debt crisis. Furthermore, emphasizing demand deterioration in the U.S., EIA trimmed their forecast for economic growth to 1.5% from 2.4% this year and to 1.9% from 2.6% next year. This effectively says that the Energy Department sees a stagnant economy for the next year and a half.

Today, WTI+$3.32, $89.34; Brent +$2.91, $$115.80; RBOB+8.54¢, $2.908; HO+6.54¢, $3.0756.

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