Commodities move with great volatility but ended up with little changes Thursday. The benchmark contract for crude oil plunged to as low as 72.93 before recovering to 73.64, compare with Wednesday's close at 73.67. While heating oil price also closed almost flat gasoline slid -1.1% to 19.174 as higher than expect jobless claims data implied weaker gasoline consumption.
Initial jobless claims reduced to 470K in the week ended January 23, compared with an expected drop to 452K, from 482K a week ago. The 4 week average increased +10K to 456K while continuing claims dipped -57K to 4602K, the lowest level in a year. We believe the overall trend continues to suggest improvement in the job market, though at a pace slower than previously anticipated.
Headline of durable goods orders disappointed the market by recording only +0.3% mom in December after dropping -0.4% a month ago. However, the reading with transportations excluded showed a +0.9% increase on monthly basis. November's reading was also revised up slightly to +2.1%.
Strength in USD and JPY indicated investors gave up higher-yield investment and sought safe assets yesterday. This was probably a major reason for the softness in commodity prices. The euro slumped against the dollar and the yen as investors doubted if Greece can reduce its huge deficit without the help from outside. The 16 nationed single currency fell to a 6 month low against USD on concerns that the Greek problem will spread to other high deficit economies in Europe.....Read the entire article.
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1 comment:
Crude oil is a commodity that is generally energies, such as crude oil or natural gas. Technological and political things affect the supply of these two. On the other end of this type of commodity trading ,demand keeps rising and has been for a long time. This is because a lot of energy is needed for everything to building to heating and powering homes that are already built.
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