Crude Oil Recovers but may Resume Decline if US Data Disappoints

Commodities rebound as some market participants find recent selloffs offer opportunities for bargain-hunting. The front-month contract for WTI crude oil price recovers to 72 after plunging to as low as 71.32 yesterday. Prices for heating oil and gasoline also climb higher. Copper price rebounds from a 1-month low while gold extends strength to above 1240, the highest level since July 1. While we expect prolonged global economic uncertainty and resurface of sovereign crisis woes in peripheral European economies should support gold’s rally, the energy and base metal complex may undergo further pressure in coming months as economic conditions deteriorate further.

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Crude Oil Recovers but may Resume Decline if US Data Disappoints