US oil topped US$40 ($54) a barrel for the first time this month, extending Friday’s surge amid easing concern over a global glut ahead of a meeting of major producers. Commodity-linked currencies maintained gains while Japanese stock futures diverged.
West Texas Intermediate crude extended its advance into a second day, burnishing market sentiment with shares in New Zealand opening higher. Futures on Japan’s Nikkei 225 Stock Average were steady in Osaka and dropped in Chicago as the yen flirted with its first decline in seven sessions. The Australian currency built on Friday’s advance with the South African rand, and copper futures increased ahead of prices data out of China, the world’s biggest industrial metals consumer. Gold rose a third straight day.
Oil’s fortunes are having an impact beyond the commodity sector amid concern over the strength of the world economy and the impact of gyrating energy prices on inflation. Global equities are trading the most in sync with oil since June 2013, with major producers from Russia to Saudi Arabia set to meet April 17 to discuss a production freeze. Friday’s 6.6% bounce, WTI’s steepest since mid-February, was also fuelled by an unexpected drop in US stockpiles and a decline in the number of active rigs. Stocks globally fell last week amid concern over the potency of central bank stimulus efforts.
“Movements in oil prices seem to matter an awful lot for the direction and sentiment in financial markets at present,” Con Williams, an agricultural economist in Wellington at ANZ Bank New Zealand, said in a note to clients. “It seems to us the likelihood of any agreement being reached on April 17 to curb production is very low. This leaves a lot of event risk in oil markets, which could recoil quickly. What ultimately needs to be watched is the fundamentals, and in this regard they are slowly improving.”
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West Texas Intermediate crude extended its advance into a second day, burnishing market sentiment with shares in New Zealand opening higher. Futures on Japan’s Nikkei 225 Stock Average were steady in Osaka and dropped in Chicago as the yen flirted with its first decline in seven sessions. The Australian currency built on Friday’s advance with the South African rand, and copper futures increased ahead of prices data out of China, the world’s biggest industrial metals consumer. Gold rose a third straight day.
Oil’s fortunes are having an impact beyond the commodity sector amid concern over the strength of the world economy and the impact of gyrating energy prices on inflation. Global equities are trading the most in sync with oil since June 2013, with major producers from Russia to Saudi Arabia set to meet April 17 to discuss a production freeze. Friday’s 6.6% bounce, WTI’s steepest since mid-February, was also fuelled by an unexpected drop in US stockpiles and a decline in the number of active rigs. Stocks globally fell last week amid concern over the potency of central bank stimulus efforts.
“Movements in oil prices seem to matter an awful lot for the direction and sentiment in financial markets at present,” Con Williams, an agricultural economist in Wellington at ANZ Bank New Zealand, said in a note to clients. “It seems to us the likelihood of any agreement being reached on April 17 to curb production is very low. This leaves a lot of event risk in oil markets, which could recoil quickly. What ultimately needs to be watched is the fundamentals, and in this regard they are slowly improving.”
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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