Headlines
- Gold stops its rally
- Global optimism pushes base metals up
Brent and Distillates
Crude futures retained their upward momentum last days, leaping to highs as the dollar lost value, equities markets edged up and technical buy signals were initiated after the positive crossover of the 200- day moving average on Wednesday. Nevertheless, the latest price movement was triggered by Saudi oil minister Ali Naimi's comments that the Saudis see demand picking up in Asia, the Middle East and Latin America.
Also production disruptions in Nigeria following attacks by militants and U.S .inventories data showing a larger-than-expected fall in crude stocks as refineries stepped up activity for the summer driving season provided support to oil prices.
On Tuesday morning oil fell slightly as investors took profit from a jump of more than 2% a day earlier, spurred by hopes of economic recovery on the back of improving factory activity.
The IEA expects a 21% fall in 2009 oil and gas investment budgets, which could lead to sharply higher energy prices in the next three to four years, a top agency official said on Monday.
China has approved a plan to build a second phase of state crude oil reserves this year, Zhang Guobao, head of the National Energy Administration, said on Monday. China aims eventually to meet the OECD standard of stockpiling oil to cover 90 days of consumption, which has prevented the world's secondlargest oil consuming country from joining the IEA.
Qatar, one of OPEC's smallest producers, has notified at least four Asian term buyers that it will supply full contracted volumes of its crude for July, steady from June levels, trade sources said on Tuesday.
