We saw a significant strengthening in crude prices yesterday, a $2.75 increase which in effect denied the previous day heavy losses. The rally was supported by a report from the US Commerce Department showing a 3.5% increase in third quarter gross domestic product, more than analysts had expected. The announcement triggered a mass exodus out of the traditional safe haven place in times of uncertainty, the US dollar into equities and commodities as riskier choices were back in favour. So a quicker than initially thought recovery in the US easily spilled over into the energy complex pushing crude prices up despite a lack of correspondent improvement in oil demand.

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Crude Oil

COMMODITY

LEVEL

CHANGE

ICE BRENT CRUDE - DEC 09

78.04

(+2.32)

ICE WTI - DEC 09

79.87

(+2.75)

GASOIL - DEC 09

651.00

(+17.75)