WTI and Brent Crude futures settled in positive territory following risk on sentiment seen across the asset classes after a deal was reached to soften the blow of the fiscal cliff late on Monday night. However WTI crude futures have retraced some of the gains to come off the highest levels since September, as have Brent crude futures which were trading at 11 week highs. Aside from the fiscal cliff oil found support from robust data out of China on Monday morning in the form of HSBC Manufacturing PMI indicating recovery in the world's second largest oil consumer. Further supporting the move to the upside was news that Iran, the world’s fourth largest oil exporter, was carrying out naval drills in the Strait of Hormuz, a waterway Tehran has threatened to block if it comes under military attack over its disputed nuclear program.
Print 19:32, 02 Jan 2013 - Commodities - Source: RANsquawk
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