New York (Platts)--17Dec2007
NYMEX's front-month crude future on the CME's Globex system were 89 cents
lower at $90.38/barrel Monday as the ongoing recovery in the US dollar put
downward pressure across the commodity complex.
The US Dollar Index on ICE was up 9 points at 77.526 after gaining 114
points last week. With last week's inflation data soaring, the markets are
pricing in no rate cut at the Federal Reserve Bank's January meeting.
"[I]nflation readings have soared, hitting two-year highs on Friday's
monthly consumer readings, while producer prices raced to 34-year highs," Ed
Meir, energy analyst at MF Global, said in a report. "Commodities have a mixed
record in such environment--although they usually spike early on due to
elevated inflation readings, prices start to recede shortly thereafter, as
slowing growth prospects become more entrenched and start to dent demand."
Heating oil was the strongest performer in the complex, as sub-freezing
temperatures returned to the Atlantic Coast, following a winter storm this
past weekend. January heating oil was 45 points higher at $2.6124/gallon.
--Linda Rafield, linda_rafield@platts.com
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