Oil Climbs Toward Five Week Peak

U.S. government data showed last week that crude inventories are at record highs at both the Cushing storage hub and in the Gulf Coast. But the market seems to have overlooked these figures, instead pushing crude prices higher as tensions build following the U.S. missile strike on Syria and a shutdown at Libya's largest oilfield. The Sharara oilfield was forcefully shut on Sunday after a group blocked a key pipeline, Libyan media reported. The field had just resumed production after suffering a week-long outage that ended in early April. Analysts reckon the current rally is also being helped by investors turning their focus to the start of the U.S. summer driving season. Brent June futures are currently sitting just below the $56-mark.

 

A measure of business conditions in Australia jumped in March to its highest level since before the global financial crisis of 2008, signalling the economy could strengthen further. National Australia Bank's monthly survey of over 400 firms showed its Index of Business Conditions surged 6 points to +14 in March from +9 in February, and was well above the long-run average of +5. The index had been choppy during the first three months of the year. The report said the latest improvement in business conditions was primarily driven by the services sector and wholesale industries. Mining also showed marked improvement on the back of higher commodity prices. Business confidence however fell to +6 from +7. AUDUSD is rebounding from a one month low recorded in the previous session, and is currently hovering around 0.75050.