Markets: Puzzlement continues

Crude oil was higher this morning amid a strong market for most commodities, trading above $61 a barrel.

Nymex July West Texas Intermediate rose 54 cents to $61.59 a barrel while ICE July Brent moved 59 cents higher to $60.52 a barrel.

Oil traders in the physical market remain puzzled about the recent strength in oil prices in spite of almost record high inventories and weak demand in the US and Europe. The focus will soon move towards Opec, the oil cartel, which meets next week in Vienna to discuss its production policy.

Gold also consolidated a two-month peak above $950 and and several agricultural and soft commodities hit fresh peaks. Read the full commodities report on