Oil N' Gold Focus: Oil Price Surges Amid Speculation On Economic Recovery And Improvement In Gasoline Demand

WTI crude oil extends yesterday's rally and rises to 47.65 in European morning. Although the OPEC deferred production cut until at least May 28, G20's commitment to revive economic growth improved investors' confidence. Moreover, we have seen fundamental changes in refinery product demands.

RBOB gasoline found bottomed in December 2008 and has risen by more than 70% since then. Although recent movement indicated that price remained below $4, fundamental outlook turned much positive. In the US, contraction in gasoline demand has eased to around 1% yoy and inventories have fallen. In Japan, demand in January rose compared with the same period last year.