Although it's still too early to conclude that crude tries to decouple from the financial markets, yesterday's sharp decline was again at odds with the bullish guidance of a continued strong equity market associated with further weakening in the US dollar against the euro. The price action could be explained by the fact that after an initial rally following better than expected US consumer confidence data, crude price became too stretched to the upside reaching a record $75.03 - more than $4 between market level and short term moving averages at some point. Additionally some of the selling could have been associated with some profit taking from the longs.
COMMODITY LEVEL CHANGE
ICE BRENT CRUDE - OCT 09 72.05 (-1.89)
ICE WII - OCT 09 71.82 (-2.13)
GASOIL - OCT 09 609.00 (-4.5)
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