U.S. Dollar, Precious Metals, Energy Update 27.10.2005

October 27, 2005 - Thursday Market Update

Dollar/Gold:
The dollar was lower against other major currencies in European trading today. Gold prices rose. In London, the British pound was quoted at 1.7831 dollars, up from 1.7749 late yesterday. The euro was quoted at 1.2143 dollars, up from 1.2071.

Other dollar rates in Europe, compared with late yesterday:
115.21 Japanese yen, down from 115.76 1.2740 Swiss francs, down from 1.2819 1.1680 Canadian dollars, down from 1.1706

Gold closed in London at 472 dollars and 80 cents an ounce, up one dollar from yesterday. In Zurich the late price was 473 dollars and 15 cents, up 25 cents an ounce.

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ROAD KILL
Thursday, October 27, 2005

Over the past couple of weeks crude oil prices have plummeted on the NYMEX [exchange] in N.Y. After a long and pronounced run up in prices from approximately 20 or so dollars a barrel a few years ago – the recent respite in petroleum prices is viewed by many as welcome, relief and necessary – take your pick.

For anyone who regularly consumes business related news from such illustrious sources as CNBC, CNN or any of their trusted major newsprint media outlets – you are likely more than well aware of the ravages caused by the hurricanes, Katrina and Rita, which recently ravaged the U.S. Gulf Coast.

Over the past few weeks [ending Oct. 20/06 at the time of writing], the Energy laden Toronto Stock exchange’s Energy sub index has now receded close to 20 % - all seemingly on the back of recently cascading [NYMEX] futures prices for crude oil, distillates and natural gas.

It has been reasoned, heck argued, through these venerable news outlets – time and time again – that the rising prices of said commodities have in effect sown the seeds of their own declines, and all is either fine or returning to normal. The age old reasoning, of course, is that rising prices lead to lessened demand and a resultant fall in prices – all economics 101 stuff that few would argue.

Reality Bites [and tells a different story]

The real story, however, happens to be somewhat different than the one espoused by the mainstream media – who at this point seem more intent on keeping the flock placid than informed. Reality [where we – the seemingly the last to know - work and reside] is perhaps better depicted by the following budding crisis in PVC [pipe] market. For those who may not be aware...

Read the entire article at: FreeMarket News
http://www.freemarketnews.com/Analysis/106/2739/2005-10-27.asp?wid=106&nid=2739

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No quick fix for Gulf oil output
Interior Secretary Norton says crude production won't return to normal "for many months."
October 27, 2005: 12:10 PM EDT

NEW YORK (Reuters) - Repairing all the damaged rigs, platforms and pipelines in the Gulf of Mexico in the wake of hurricanes Katrina and Rita will take up to a year and crude oil output will not return to normal "for many months," U.S. Interior Secretary Gale Norton said Thursday.

In written testimony for a Senate Energy committee hearing, Norton said about 45 percent of oil and gas pipelines in the Gulf were operating, while 30 percent need repair. Another 25 percent were undamaged but could not be used due to "downstream problems."

In addition, 16 natural gas processing plants, which purify gas before it can be shipped to customers, remained closed.

Earlier Thursday, Royal Dutch Shell said production from its Mars platform in the Gulf would not resume until the second half of 2006 because of damage from Katrina. BP's (Research) Thunder Horse, originally scheduled to come online in 2005, will not begin producing oil and gas until late 2006.

As of Wednesday, 68 percent of the Gulf of Mexico's 1.5 million barrels per day of crude production capacity was shut along with 56 percent of the region's 10 billion cubic feet per day of natural gas production, according to the U.S. Minerals Management Service.

Read the entire article at: Money.cnn.com
http://money.cnn.com/