Oil at multi-year highs

The Australian market will make a tentative start late today after Friday’s less than inspiring end to the week. Eurozone shares fell 0.5% on Friday and the US S&P 500 lost 0.3% as geopolitical concerns and rising bond yields continue to surprise and worry US investors.

Oil prices rose but gold sold off sharply (the biggest weekly fall in seven months or so), while copper and iron ore prices fell slightly. A further rise in the $US weighed on the $AUD, which ended just above 75 US cents.

Oil’s run has been extraordinary, with Brent having now risen for six weeks in a row, the longest such run since March 2011. In New York on June West Texas Intermediate (WTI) crude fell 21 cents, or 0.3%, to end at $US71.28 a barrel, after settling at a 3½-year high over the past two sessions. The timing has been timely for Santos (STO) which has today announced a further increase to the proposed offer from would-be acquirer Harbour Energy.


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This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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