Commodities Daily - April 8, 2019

> Oil prices surge on upbeat macro data, stock market tailwinds and Libyan turmoil; busy week ahead. This morning, investors are digesting mixed comments from the Saudi energy minister, who said that oil markets were moving in the right direction this year and suggested that there may not be a need for the kingdom to maintain its deeper-than-agreed production cuts. He also noted that it was premature to say that OPEC+ had reached a consensus to extend the cuts, and that the June OPEC meeting in Vienna would be key in this respect. He indicated that global oil inventories were so far still about 70-80 mln bbl too high. The key for us today will be whether Brent will manage to hold above $70/bbl (we think it will), as the relative strength index indicates that it is in overbought territory.> Gold climbing toward $1,300/oz as market awaits Fed minutes. Gold prices ended the day on Friday basically flat, despite the US jobs data. In other market news, Trump continued criticizing Fed policy and the PBoC reported higher gold reserves for a fourth month in a row. Today, we expect gold to extend this morning's gains and finish the day above $1,300/oz.