Commodities Agenda: All about Ike (and that sex scandal too)

By Reuters Staff
September 11, 2008

The latest projections pointed Hurricane Ike toward the middle of the Texas coast, skirting to the west of the main region for offshore production in the Gulf. Nonetheless, oil companies have shut more than 95 percent of offshore production and 90 percent of refining capacity on the mainland. Weakening demand is still the driver for the market this morning; crude oil prices are under pressure

Offshore drilling platformElsewhere in the oil patch, an U.S. Interior Department report makes for unusually salacious reading, with claims that employees who oversaw oil drilling on federal lands had sex and used illegal drugs with workers at energy companies. “When confronted by our investigators, none of the employees involved displayed remorse,” inspector general Earl Devaney said.

The internal report on the department’s Minerals Management Service emerges a day after Democratic lawmakers in the House of Representatives unveiled legislation that, if passed, would permit offshore drilling at least 50 miles from U.S. coasts.

Some of the stories Reuters commodities reporters are tracking today:

  • House Agriculture committee hold hearing on price movements in agriculture and energy commodity markets
  • USDA export sales
  • US ITC releases base metals import data

Now someone needs to investigate EIA and see what is the cause of continuing uncertainty in the inventories as reported(and of course corrected after the oil price has reacted).

Posted by Duane Barber | Report as abusive

Actually it is pretty clear cut. An overwhelming majority of trades in the commodity market are from people who never take delivery of the product-and the lack of regulation in these markets must be corrected. There was no need for the price of oil and many basic metal and food commodities to reach the levels they hit. Between the hedge funds,banks, and I suspect foreign nations whose interest is to keep the price of oil high-not for profit on the trades-but to keep the value of the oil they pumped high-they were able to basically corner the markets. Now that currency values have become directly linked to commodities from oil first-the central banks can no longer allow a wild west attitude to commodity trading. There are steps being taken now- 1 year too late. Yes this can be fixed-conservation-yes,alternative fuels-yes, but much faster-the executive branch of the US government in conjunction with foreign governments-or without if necessary to expeditiously reign in the abuses that have caused so much pain to not only our citizens- but accross the globe.

Posted by greg mansley | Report as abusive

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