FastFT with comments from Barclays on oil and commodities
The main points:
- On oil: " ... grounds to believe markets may have bottomed, to us the scale of recent price gains looks overdone"
- Economic data has improved, but not enough to support current prices
- "... commodity markets have moved ahead too far, too fast over the past few weeks and we continue to expect retracement before long"
- Global economy still fragile
- Underlying weakness in commodity demand
- Turning point for commodities is still some way away
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Barclays make a lot of sense, certainly the gains have been sharp and large. A great trading environment.