WTI crude oil continues to trade below 50 in European session. Although we have been saying that upside for oil price is limited due to weak fundamentals, decline these 2 days was brought by reversal in market sentiment. The black gold's recent rally was driven by improved confidence that global economy will recover in 2H09 but the outbreak of swine in Mexico may potentially delay it.
In our opinion, the negative impact from the flu on oil price may not be as serious as the market anticipated. As many investors compare the current situation with the SARS in 2002, we would like to look back and see what had happened at that time.
In our opinion, the negative impact from the flu on oil price may not be as serious as the market anticipated. As many investors compare the current situation with the SARS in 2002, we would like to look back and see what had happened at that time.
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