Wednesday, August 19, 2009

Commodity Roundup for August 19, 2009

Today the equity markets gapped lower on news that the Shanghai Composite once again took a nasty beating during their trading session. The US equity markets began bidding hard as the dollar weakened causing commodity prices such as oil to increase, which lead to a rally in oil stocks. Also, fueling the surge in the price of oil was the bullish inventory numbers that came in as inventories declined the most in 15 months. This sent the spot price of oil up to eventually settle for a gain of over $3.00 on the session. The OIH and USO are both consolidating in a triangle formation and will eventually breakout out either to the upside or the downside.

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