Kate Mackenzie Markets: Pullback, but the disconnect continues

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.

Related links:
The coming oil-equity disconnect or the end of efficient markets theory? (FT Alphaville 08/05/09)