Saxo Bank's Head of Commodity Strategy Ole Hansen gives us his weekly round up of the headlines from the commodity markets. With Dakota oil slipping under USD 50 the price of oil is still under intense scrutiny. Saudi Arabia is now offering European and Asian customers bargain prices for January. Food prices are at a four year low, gold is having its best week since February and Ole has his trade tip for a busy week in commodities. Saudi Arabia has suggested that oil prices will stick in the $60-$70 range, with prices below $60 needed to beat Shale and deliver the market share the Saudis appear keen to grab. Gold has seen the best week since February with sentiment moderately bullish given an upside potential limited to around USD 1222. Food prices are at a four year low with record US cereal harvests boosting output at 2.05 Billion tonnes combined for global wheat, corn and soy. Falling food prices will add to the disinflation forecasts for Europe, combined, of course, with current low energy costs. Ole Hansen's trade tip this week is on Oil and he suggests shorting any rallies as he expects them to be short lived. It's still a bear market and the low so far in Brent has been around USD 67.50 and a break below that could see another USD 5 fall down to what would be yet another record low since June.

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