Crude oil price remains weak Wednesday after plunging 6.9% to settle at 34.93 yesterday as economists predicted stockpiles have risen for the 19 times (out of 21) last week in the US amid weak consumption. Reuters/Jefferies CRB index also slid to 203.25 yesterday, the lowest level since 2002.

According to Bloomberg survey, US crude oil inventory should have gained 3.2mmb for the week ended Feb 13. For refinery products, gasoline and distillates inventory likely dropped 0.3 mmb and 1.5 mmb respectively. The reports will be released Thursday by the US Energy Department due to a public holiday on Monday.

In Asian morning, shares in Australia were down by almost 3%, driven by the sharp fall in oil prices. Both BHP and Rio Tinto lost more than 4% while Woodside Petroleum dropped over 2% in morning session. Stocks in Japan also slumped with the Topic index falling towards the lowest close in 25 years. Resignation of the Financial Minister as well as disastrous GDP report (which showed 4Q GDP contracted by 12.7% yoy, the most since 1974) was the main contributing factors.

Gold price, on the other hand, remains upbeat. The benchmark contract continues to trade higher after surging 3% to close at 970.8 Tuesday. Next resistances for the precious metal are 988.6 and 1033.9 and we believe it can reach the target of $1000/oz given strong investment demand amid low interest rate environments and growing concerns on inflation.

We have discovered increase in demand in Asian countries, especially in Japan. Sharp fall GDP and industrial production reflected the world's second largest economy has entered deep recession investors probably need to find a safe haven that can offer store of value.

Rally in platinum also resumes after pulling back slightly after poor auto sales in Europe. The benchmark contract rises to 1114.2 after closing 2.4% higher at 1097 yesterday. While global auto sales will continues to decline in coming months, investment demand should support platinum prices.