CITI ON THE INCREASE IN OIL SUPPLY IN THE MARKET

Citi: US oil fuels equity bounce News that the US government has released crude oil from its Strategic Petroleum Reserve as part of a test drawdown has resulted in equities staging a decent bounce. The front-month S&P is now up 1.8 at 1867 from a low of 1854.20. fastFT writes that “The US Department of Energy said it would offer up to 5m barrels of sour crude oil for sale. The US mainly produces light sweet oil, but the crude it is selling is similar to that of Russia.” It quotes one analyst as saying this is a signal. The reaction in FX is more modest. EURUSD remains bid, while USDRUB has eased to 36.48.