Evidence of “green shoots” emerging from leading indicators in developed economies has helped to lift prices. Traders have also pointed to rising hedging activity by consumers and a pick up in speculative interest as further signs that market activity is strengthening.
ICE June Brent fell $1.37 to $56.77 a barrel while Nymex June West Texas Intermediate lost $1.35 to $57.28 a barrel after reaching a fresh 2009 high on Friday at $58.75.
“Should equity markets, which have been a heavy influence on energy prices, continue to rally then oil could take out $60 this week,” said David Hart at Hanson Westhouse. “However, fundamentals in the oil market remain less bullish.”
Read more in today’s FT commodities report.
The coming oil-equity disconnect or the end of efficient markets theory? (FT Alphaville 08/05/09)