By Leon Westgate
Crude oil shrugged off the dollar yesterday, with front month WTI climbing during US trade to finish just shy of $83/bbl at $82.93/bbl. This morning has seen the dollar link re-emerge however, with a stronger dollar seeing prices come back under pressure.

The DOE inventory data was towards the more bullish end of the spectrum, with larger than expected draws in Gasoline and Distillate stocks, down 1.71 and 1.49 million barrels respectively, and a 631k bbl draw at Cushing.

Crude Oil Inventories also posted a smaller than expected increase, climbing 1.01 million barrels, though this still represents the 7th consecutive weekly increase in crude oil stocks. Meanwhile, and as expected, OPEC agreed to keep its production limits unchanged.

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Coal prices struggled on Wednesday, with API2 for Q2-10 falling $0.90 to $75.60/mt and Cal-11 falling $0.55 to $90.50/mt. The coal market has been very quiet this morning, with prices drifting lower in line with the stronger dollar and weaker crude prices

The approach of cyclone Ului means that the Hay Point port in northeast Australia remains closed. A stockpile limit at the port will affect rail supplies to the terminal and may see some mines temporarily halt output. The 44 million-mtpy capacity port has been closed since March 11.

Courtesy: Standard Bank

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