Oil Update

marketsforu

Data on US oil inventories  showed a sharp decrease in crude stocks. Initially the release provided little support for commodity price, however later on we saw the WTI surging above 47,0. With gains as high as 5,5% during Wednesday, oil can be easily named a winner. Higher oil prices translated to out-performance of energy stocks that were among the top gainers in S&P 500 index. Commodities currencies also saw higher oil as a factor for their appreciation, NOK gained about 0,5% and CAD 0,5% on a daily basis.
However it was not only oil that helped US stock market, as all sectors broadly appreciated. S&P 500 gained about 0,7%, after somewhat flat start . We had quite a solid day on equities in Asia and Europe with Asia boosted by a strong finish in Shanghai . That mood travelled to Europe where the news of a possible merger between two beer giants helped propel indices higher.
On the fx market the US dollar is under pressure following a weaker than expected inflation data whereas the British pound is on the other side of the G10 spectrum gaining both on solid labour market data and comments from Carney and other MPC members during the parliamentary hearing.
On other notes from major central banks we saw an announcement from European Central Bank that decided to allow local central banks to inform the market regarding the support provided in ELA program. Furthermore Agata Cothe from Bank of Canada said that current CAD exchange rate corresponds to developments on oil market.