Crude On Friday, crude was trading in a similar fashion as during previous session and stayed range-bound between 112 USD per barrel (USD/bbl) and 115 USD/bbl. The latest CFTC report showed significant drop in net speculative position in WTI. Moreover, number of short positions held by Money Managers (MM) leapt by 50 percent. Still, net long positions of MMs was seen at 233 thousand contracts, i.e. much higher (about 20 percent) than in pre-Libyan period. Today in the morning, crude lost about 1 USD/bbl due to the stronger U.S. dollar. Brent is currently trading for 113 USD/bbl. Base Metals Today, copper has already erased Friday’s gains. Rising risk aversion bolsters the U.S. dollar and sends the red metal back below 8800 USD per ton (USD/t). We believe that the metal could edge even lower in a short term. Fundamentally, China’s clear commitment to fight the inflation weighs on the base metal complex. On the other hand, high level of uncertainty (related for example to stocks in bonded warehouses in Shanghai) should keep markets volatile. Precious Metals Strengthening U.S. dollar certainly does not play in favor of USD prices of precious metals. On the other hand, increased inflation worries as well as lingering Euro zone problems keep the price of gold in EUR high. On Friday, the metal was trading in sight of all-time high and reached even 1074 EUR per troy ounce. Chart of the day: The latest CFTC report showed significant drop in net speculative position in WTI. Moreover, number of short positions held by Money Managers (MM) leapt by 50 percent. Still, net long positions of MMs was seen at 233 thousand contracts, i.e. much higher (about 20 percent) than in pre-Libyan period.

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