Oil Market Report

WTI rose as the tension between the west and Russia over Ukraine escalated 。

    WTI crude oil price rose by 4.6% during the review period (14 February - 14 March 2013) to USD 101.72 per barrel after geopolitical tension between the West and Russia rose over the fate of Crimea region in the Ukraine. Adding to that, the cold weather prevailed in most parts of the US which aided the strong demand for heating oil in the country. US manufacturing growth rebounded off an eight-month low in February, helped by a recovery in new orders. Meanwhile, the US trade deficit was little changed in January as a rebound in exports matched an increase in imports. However, the US government slashed its estimate for fourth-quarter economic growth in the latest sign of a loss of momentum, but some tentative signs emerged that suggested the worst of the slowdown may be over.

    EU’s GDP grew larger than expected; China’s services gained some momentum 。

    The Euro-zone economy grew more than expected in the last quarter of 2013 thanks to stronger expansion in its biggest countries France and Germany. German exports and imports surged in January at the fastest pace in nearly two years. Meanwhile, the bloc’s current account surplus fell from a record high at the end of 2013. Moreover, Euro-zone sentiment rose to its highest level since April 2011 in March, driven by investors' upbeat view of current conditions. In other news, China's services sector regained some momentum in February but its manufacturing sector struggled as the official non-manufacturing Purchasing Managers' Index (PMI) rose to a three-month high of 55.0 in February, while the final Markit/HSBC manufacturing Purchasing Managers' Index fell to 48.5, its third straight decline.