Will Swine Flu Impact Travel?

Tuesday, October 13, 2009

Crude oil futures climbed back into positive territory Wednesday in Asia as regional share markets turned higher, although traders remained cautious ahead of weekly U.S. government data that could show fundamentals staying weak.

The federal Energy Information Administration is expected to post further increases in the country's crude and distillate stockpiles, potentially dousing hopes for an early recovery in demand.

Sentiment also remained under some pressure as oil and financial markets watched the global response to the swine flu outbreak from Mexico, amid concerns a pandemic may undermine prospects for an economic recovery.

"Swine flu is certainly one fact that's been a negative for the oil price because it's seen as potentially affecting international travel, and even travel within countries," said David Moore, a commodities strategist at Commonwealth Bank of Australia.

Despite this early 1 dollar rebound in Globex futures I think oil futures are shortable here. You will benefit from lower prices and be paid for waiting because of the contango.

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