Metals are expected to remain low
In a recent interview published on CNBC, Mark Keenan, Head of Commodities Research for Asia Pacific at Societe Generale, discusses the oil volatility and the expected movement on the currencies.
''It is interesting that the market has elevated its sensitivity quite significantly over the last few days to the moves in the dollar following William Dudley's comments earlier this week on his concerns of the financial markets. The key thing to bear in mind is that the crude market at the moment is very shortly positioned. It is a record short positioning of the speculative community.
So, any trigger that might induce a short covering rally, any movement in the dollar is likely to have a significant impact on prices. We have certainly seen that over the last few days. So it is very much certainly something to watch and we expect volatility to remain very elevated and extreme over this period.''
Mark Keenan, Head of Commodities Research for Asia Pacific at Societe Generale
To read the full interview, please visit: www.moneycontrol.com