| News | Crude around $103 on eased concerns over Europe, continues worries over Iran |
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| Analysis | Concerns over Europe eased today ahead of the of a key meeting between Merkel and IMF's chief Lagarde to discuss about Greece, while fears related to Iran's threat to shut down Strait of Hormuz continue. The tensions over Iran's nuclear program fuel concerns that this dispute may lead to a disruption in crude exports, meanwhile eyes are still turned to Nigeria, as thousands of people still protest against the removal of fuel subsidy. German Chancellor Angela Merkel will meet today the IMF’s managing director Christine Lagarde in Berlin to discuss about Greece. Yesterday Merkel and Sarkozy stressed the need of quick solutions to ease Greece's debt burden. This eased the worries over Europe's debt crisis, increasing investors' optimism and demand on higher yielding assets, thereby the euro rose trading around 1.2777, while the dollar index fell slightly trading around the 80.88 level. The dollar's downside movement gave an additional upside support to oil prices, where crude is trading as of this writing around the $102.90 level while Brent is trading around $113.40. As the US recovery is increasing, while Alcoa gave a good start to the earnings season today, commodities managed to extend their gains today, where gold is trading around $1632.20 from the opening at $1609.80. Crude oil jumped today to the highest of $103.39 per barrel from the lowest at $101.23 per barrel, while it opened today at $101.29, although Chinese data disappointed today as the trade balance came weaker than expected. |
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