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