Global commodity markets remain range bound
Though the crude oil futures prices did rally by 2% in reaction to the report it did so briefly and then dropped by around 1% the following day, indicating that the market did not completely accept the new forecast. It might be recalled that in April Goldman Sachs had sounded bearish on commodities and had given a ‘sell’ call. The rout in commodities in early May to an extent was attributed to this bearish call. But this time round the markets seemed to have kept their own counsel, while at the same time noting the forecast by the two investment banks.
The other important news with respect to crude oil was the crackdown on physical market manipulators by the US commodity regulator Commodity Futures Trading Commission in the form of a suit that was filed last week against traders in Australia, US and other some other international firms for trying to manipulate the crude oil futures market back in 2008 by hoarding physical
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