Barclays Capital Further Quotations

U.S. gasoline inventories have fallen further below their five-year average, while U.S. oil demand remains strong. Our estimates of current market balances indicate a significant tightening relative to a year ago.

The market could be subject to further weakness in the near term towards $535. The technical charts will be closely monitored in this correction phase for any signs of a broader trend reversal.

In all, the disputes serve as further notice, if needed, that the Atlantic refining system is operating on the edge at the moment.

While we think such high prices are not justifiable by gold 's commodity fundamentals in terms of market balance and inventory levels, the combination of a surge in oil prices above $70/barrel, geopolitical tensions and strong momentum is dominating at present, and further gains cannot be ruled out.

There remains room for further upside this year, with fund interest continuing to be justified on...inflationary concerns, fears of economic slowdown, hopes of large Asian central bank buying.

Given the overall positive sentiment and an apparent lack of interest to short the marker aggressively, we see further room on the upside.

It is worth noting that prices are getting little support from the physical markets despite relatively steady prices of late, which suggest that threat of further correction remains.