Energy

AWE has decided to conduct a review of Tui oil reserves, and given strong production numbers analysts are expecting good things.

Deleveraging of commodity positions saw a major sell off across the spectrum as Merrills gets the wobbles and nips financials in the bud. The Dow closed down 293.

A 21 point rise in the Dow belied another rollercoaster session in which traders tried to decide whether Bear Stearns could have signalled a bottom. The commodities bubble popped in a dash for cash.

There were two casualties of war on Wall Street on Friday – the truth, and Bear Stearns. Dow down 194. Gold over US$1001/oz.

Speculators have been driving oil prices and this makes a correction likely short-term but a tight market means prices will remain above US$100 per barrel in 2009 says Westpac.

Surveys of attendees at Barclays Capital’s fourth annual Commodity Investors Conference last week offer some insight into how professional investors are approaching commodity markets.

It was down, up, and down again on Wall Street to only a small rise while the numbers 111 and 1000 made their debuts.

It was back to business as usual on Wall Street last night as the dollar hit new lows, oil new highs and an early rally in the Dow failed.

The Fed responded to criticism last night by not cutting rates and instead injecting liquidity directly into the mortgage market. Wall Street loved it and the Dow rallied 415 points.

The Dow was down another 150 points last night as some slightly positive economic data were overshadowed by concern over the liquidity positions of major brokerages.