If any further evidence were needed of the bearish sentiment towards oil, yesterday’s price action confirmed this weakness once more, as the commodity attempted to rise in early trading, before selling off sharply later in the oil trading session, with the June WTI futures contract closing at 101.28 per barrel, having hit an intra day high of $102.20 per barrel.
Reports overnight show Ukraine’s GDP fell by 1.1% yr/yr for the first quarter in 2014. Ukraine’s department of State Statistic Services report also indicated its economy dropped 2% in January-March from the previous quarter.
Brent crude oil (BNO, quote) suffered its largest loss in almost a month, bringing it down near $108.
Whilst commodities such as nickel and coffee have been offering longer term investors excellent returns this year, and with soybeans set to join the party with some good rollover returns, crude oil has promised much but delivered little.
Longer term investors in both gold and silver have no doubt become increasingly frustrated over the last few months, as first the metals gain some bullish momentum, only to see this promptly reversed with a return of bearish sentiment.
Brent crude oil (BNO, quote) approached $110 on Friday morning and traded at $109.99 at 8:00 GMT as investors kept a close eye on Ukraine where the conflict between government forces and pro-Russia separatists escalated.
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Speculation on China’s demand for copper (JJC, quote) has sent copper to a seven week high this morning of $3.09 not seen since March 7th.
Brent crude oil (BNO, quote) was steady above $109 as investors kept a close eye on the developing situation in Ukraine and breathed a sigh of relief following in-line Chinese data.
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