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Hansen: Trading crude's narrowing spread
The spread between Brent crude and WTI is at its lowest in a month and it could narrow even further. That's according to Saxo Bank's Head of Commodity Strategy, Ole Hansen. Rising production in Libya and hopes sanctions will be lifted in Iran have put pressure on Brent. A drop in US inventories has supported its counterpart where we're approaching a resistance level of around USD 95 to 96 a barrel, according to Ole. He suggests Brent could fall further.
Gold is one of the least favoured commodities on investment managers' shopping lists right now, says Ole. He notices that they're looking further into the year and see the potential for rising bond yields and stable stock markets and that's not playing into the hands of gold as an alternative investment. However, there is strong physical demand for gold which has been giving some support.
01:50 minutes
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