Mar 08, 2016 (LBO) – Oil rose to a two-month high, up 5.5 percent, on a technical rally which is being closely watched by markets, as iron ore jumped 19 percent, and Gold rose to its highest in a year.
Brent crude rose 5.5 percent to 40.8 dollars per barrel, as analysts said a break of resistance between 40 and 42 levels could signal a more substantial rally.
Oil has rallied to levels last seen in early December with Russia, Saudi Arabia saying they would freeze production, provided others came on board.
A group of OPEC producer countries could meet in Moscow later this month, which could lead to co-ordinated action according to BBC.
Iron ore reported its biggest ever jump on expectations that China was cutting production. The slowing Chinese economy had led to a fall in demand for iron ore, creating a global glut.
“The iron ore and steel markets have gone berserk — they’ve departed from fundamentals and are heavily driven by sentiment,” said Zhao Chaoyue, an analyst at China Merchants Futures Co.
buy grifulvin online buy grifulvin online no prescription
in Shenzhen, according to a Bloomberg report.
“Investors are expecting further monetary easing by the Chinese government to boost steel demand.”
Iron ore’s near 20 percent rally follows copper’s move back above 5,000 dollars a ton on Friday, while platinum has jumped above 1,000 dollars an ounce.
Some stocks linked to commodities are rising dramatically with Glencore Plc up 89 percent, fellow copper miner Freeport-McMoRan Inc. up 46 percent, and gold miners Sibanye Gold Ltd. soaring 140 percent, and AngloGold Ashanti Ltd. up 98 percent.