Opec is overproducing and even though there is talk of a severe winter, distillate stocks are at 26-year highs," MF Global analyst Edward Meir said.
SHOOT: The markets are really moving all over the place, aren't they?
Singapore - US crude futures rallied to a one-year high above $80 a barrel on Tuesday, lifted by a slump in the dollar to a 14-month low and a rally in US stock markets to their highest in 12 months.
Strong earnings have boosted US equity markets, with the Dow industrials up another 1% on Monday, beating down the dollar to make a range of commodities more appealing for non-dollar buyers.
US crude for November delivery touched $80.05 a barrel in Asia, its highest since October 14 last year, but retreated to $79.80 a barrel by 05:15 GMT, up 19c from Monday's settlement.
"This is a demand story. If we focused on supply this market would be falling," ANZ's senior commodities analyst Mark Pervan said.
He added distillate stockpiles were likely to fall as the quarter wears on and winter takes hold in the northern hemisphere, which could trigger covering of remaining short positions.
|
clipped from www.fin24.com
No comments:
Post a Comment