Energy markets pushing higher-crude up over $2.00/barrel currently at $102.50 with gas and diesel both up about 4 cents, mostly on the weaker U.S dollar index.
The NYMEX appears bent on recovering ground lost the past two weeks after crude slipped from near $115 falling backward to near $96. Fundamentals continue to mean little to the outright trade and speculative concerns for the economy and the relative strength of the dollar remain the predominant influence. This morning augmenting the market bulls are the renewed tensions in OPEC members, Yemen and Libya, threatening continued potential for supply disruptions.
The state of the U.S. economy is getting a more intense look following a week that saw disappointing indicators from manufacturing and consumer spending data. The ongoing “catch-22” of weak economic news creating a weaker dollar, but at the same time driving energy and commodity prices higher, definitely remains in play.
Reportedly TransCanada has been forced to shut the Keystone Pipeline following a detected leak at a pumping station. The closure marks the second similar episode in the last month, the first being in early May. The Keystone is key artery for Canadian crude oil to the U.S. refineries and is capable for pumping 600,000 bpd. At this time it is uncertain when the line might resume operations.
Key economic reports due out today-Home Price Index and U.S. Consumer Confidence for May.
