Malcolm Graham-Wood
Independent Analyst
Last week I named it ‘short covering Friday as for the last few weeks this day has seen bears closing short positions ahead of the weekend, but today is slightly different. Last Friday we had just bounced off the low of the 50% retracement of the 5 year high and now the market appears to have settled down at least a touch. Despite the slightly odd EIA stats, which i believe are down to unexpected refinery activity, oil rallied again last night.
The reason was that it seems that Saudi Arabia output in September fell by 328/- b/d to only 9.36m b/d, a token fall you might agree but a fall nevertheless. This is surely only down to a combination of eastern refiners taking their feet off the pedal and sluggish demand but it was what the market wanted to hear so that’s final.
Today sees UK GDP 3Q stats and if you don’t want to be invoiced by the EU for £1.7bn for managing your economy well and being highly disciplined then Gideon should instruct his minions at the treasury to start putting out figures with a minus sign in front of them. Yes, the latest act in the Eu’s attempt to get UKIP voted in has singlehandedly been a success, they might as well have a swift saver on the party to win in Rochester with a few of those munificent expenses they pay themselves…
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