» » UK Market Update Mon 08 April 19: Oil continues to Rally on Supply Concerns

UK Market Update Mon 08 April 19: Oil continues to Rally on Supply Concerns

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Supply concerns with oil have helped put prices above the $70 as Libyan conflict adds to similar Venezuelan constraints. This will help lift oilers if prices stay north of the $70 mark. Conversely, airlines and other transports may suffer as a result of the higher input costs. GBP seems to be settling around the $1.30 for now in anticipation of a Brexit outcome on longer extension this week. It seems likely that if the leaving date is extended to end 2019 then sterling will rally in response.

In today’s price action, all of the indices closed relatively flat having sold-off earlier in the day: O&G producers were the stand-out performers with the sector up 1.3% as crude prices boosted sentiment. Oil closes just short of the $71 mark

In market sentiment, VIX scores across the board remain low although he CBOE VIX rose 15% but remains at the 13 level which is historically very low. VFTSE is below 12 while the European VIX, VSTOXX is highest at 14.6

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