Dr.Francisco Blanch is seeing that,in the short run,it's still a very tight crude oil market.
Dr.Blanch,global head of commodities research and a managing director at Bank of America-Merrill Lynch,notes that we're going into the summer driving season now.
China has stopped exporting diesel.Japan has strong needs for fuel.It's still very tight going into June and July.
You can only buy West Texas Intermediate crude around Texas and Oklahoma.Brent crude should be your global benchmark.It may be at 140.00 a barrel in three months.It is currently around 115.00.
In terms of the economic context for commodities,Dr.Blanch observes that real interest rates are about to turn upward.If the U.S. economy gets back on track,the Federal Reserve will not renew the Quantitative Easing policy.
These factors tend to support commodity prices.
Dr.Blanch says they also like corn and palladium.
Francisco Blanch has a doctorate from the Complutense University of Madrid.He is the publisher of widely read newsletters such as Global Energy Weekly,Commodity Strategist and Energy Strategist.
Bank of America(BAC)
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