September Crude Oil closed higher on Tuesday but well off the high as traders pared long positions ahead of the close in anticipation of tomorrow’s Energy Department report. Today’s late session break may have caught traders by surprise because estimates are calling for U.S. crude stockpiles to drop about 2.25 million barrels. Traders expect to see gasoline inventory figures show an increase of about 850,000 barrels tomorrow when the weekly Energy Department supply and demand report is released.
Despite comments from Fed Chairman Bernanke that once he decides to deploy the exit strategy inflation can be controlled with Fed “tools”, August Gold remained firm throughout the day. The lack of buyers kept the market from moving higher, but sellers never showed up either to break the current upswing.
The September E-mini S&P 500 opened higher on Tuesday fueled by talk that the Fed was ready to consider an exit strategy from their greater than yearlong expansionary money program. This gave traders a sense of confidence that the Fed was acknowledging the start of an economic recovery.
