Crude oil price recovered slightly as boosted by rallies in stock markets. Although there's not much economic data released until the US session, investors bid up prices in Asia and European sessions. China's Shanghai Composite Index gained 0.5% to close at 8-month high at 2527.2 today as new loan data came in better than expected. In Europe, UK's FTSE 100 Index gained 0.7% as led by banks and commodity stocks. In Germany and France, benchmark indices also climbed 1.8% and 1.33% at openings.

Although it's believed that oil and stock prices are moving in tandem, this relationship does not hold all the time. In fact, there were occasions that the 2 prices are moving in opposite directions. However, since the beginning of 2009, correlation between the 2 has increased sharply as performance of both instruments are hinged on economic outlook.

While the concerns on oil's fundamental loomed after IEA's downward revision on demand last Friday, the agency actually also reduced its future supply estimates, which is positive. According to April's report, 'global oil supply fell by 400K bpd in March, to 83.4M bpd. Non-OPEC supply fell by 170K bpd, with a 220K bpd dip in the OECD partly offset by higher non-OECD output. 2009 non-OPEC output is revised down by 320 kb/d, largely due to lower biofuels output, and weaker 1Q09 crude production in Asia. Non-OPEC output now falls from 50.6M bpd in 2008 to 50.3M bpd in 2009'. At the same time, the agency estimated that OPEC's compliance level has increased to 83% in March from 80% in the previous month.

Gold price continues to hover around 890 level as growth in investment demand has been sluggish. Bullion holdings in SPDR stayed unchanged 1127.68 yesterday as investors shifted to platinum and basic metals.

Inflationary pressure eased in the US with PPI dropped -1.2% mom in March following a +0.1% mom gain a month ago. Core PPI, excluding energy and food, was flat from a month ago.

Copper price in London rallies to 6-month high at 4640 with the trading theme still about China's demand. LME copper inventory plunged to 492K metric tons, the lowest level in 2 months.