Daily Morning Call

From the Floor: Oil jumps as Saudi, Russia back more cuts — #SaxoStrats

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Oil prices rallied when Saudi Arabia and Russia voiced support for extending Opec-led production cuts by nine months, to March 2018. But so far the oil price rally is mainly driven by short-covering, and new longs would be needed to drive it higher, says Saxo Bank's commodities strategy chief Ole Hansen.
  • Oil jumps as Saudi Arabia and Russia say cuts should be extended to March 2018
  • WTI retraced half of the April-to-May selloff on Saudi and Russian verbal support
  • Oil's rally driven mainly by short-covering at this stage: Hansen
  • Market would need more new longs emerging to drive rally further: Hansen
  • Gold stuck between key levels of $1,200 and $1,250 /oz
  • China-led talks on big infrastructure spending boost industrial metals
  • Very weak inflation data on Friday caught fixed-income market by surprise
  • Yields a bit lower on weaker-than-expected inflation
  • June Fed hike looks a little less certain, though still priced at 93%: Boye
  • Commodities trader Nobel Group's stocks and bonds hammered on debt fears