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Weekly Energies
On Tuesday, OPEC threw the world a bone by announcing a 500,000 barrel per day production increase, but not until November 1st. The very next day, the Department of Energy said that U.S. crude oil supplies dropped 7.1 million barrels the previous week and gasoline supplies were down 700,000 barrels. It is very hard to see at this point how refiners are going to be able to increase heating oil supplies for winter without reducing record-low gasoline supplies even further. November reformulated gasoline climbed 5.40 cents to $2.0144.
Hurricane Humberto surprised investors by going from a tropical depression to a hurricane in just 18 hours and hit East Texas and Louisiana with heavy rain and damaging winds. There was no significant damage reported to the oil or gas rigs in the Gulf of Mexico.
The week for natural gas began with news that militants sabotaged six gas pipelines in Mexico and then the market absorbed concerns about Hurricane Humberto. Despite the shock, U.S. natural gas supplies remain high, at 3.069 billion cubic feet with another six weeks available to build supplies even more. November natural gas ended the week up 60.8 cents at $7.054.
Weekly Metals
On Thursday, GFMS, Ltd. said that world gold mine production was up 3% in the first half of 2007 from last year's low levels. Even so, they expect prices to stay high, averaging $690 in the second half of 2007 and working higher in 2008. December gold finished the week up $8.10 at $717.80, the highest spot close in over a year, with high hopes that the Federal Reserve will cut the federal funds rate when they meet on September 18th.
On Tuesday, copper prices got a lift after a report showed that China's copper imports were up 43% in the first eight months of 2007 from a year ago. Copper has been a little torn lately between strong economic news from China and weak economic news here in the U.S. By Friday afternoon, December copper had gained back last week's loss, closing up 14.10 cents at $3.3925.
