Today in early trading, Brent crude extends last evening’s gains and at the time of writing is hovering at 112.50 USD per barrel (USD/bbl) level. At the same time, backwardation in the short-end of the ICE forward curve heightens and the spread between 1M and (95,37 USD, 0,43%) contract hits the highest level since mid August.
Regarding news, Saudi Oil Minister Naimi held a speech in Riyadh. He said that the oil market had stabilized and prices had come down to suitable levels for consumers and producing countries and for the global economy and its growth. However, Naimi added he hoped the price would ease further and said Saudis would work towards moderating, which is in line with previous comments; let us recall that earlier this year Naimi identified 100 USD/bbl as a fair price for both consumers and producers.
The price of gold fell further on Monday and therefore moved away from 1800 USD per troy ounce (USD/toz) level. Despite the fact that the demand of end users remains rather muted, investors demand has been boosted by further round of monetary easing across the world – holdings of the metal by major ETF hit yet another all-time high yesterday. Moreover, net speculative position (CFTC) in gold more than doubled over past two months and is therefore seen at the highest level since the end of February.