Risk appetite remains robust in European session. Although the euro, equities and commodities were down modestly amid concerns over Spanish banking systems, prices recovered as the central bank of Spain said it might publish results of the stress test to the public. Currently trading at 77.3, the front-month WTI contract is down -0.35% from yesterday's close. Price slid to as low as 76.78 earlier in the day.
Latest development regarding Gulf of Mexico (GOM) oil spill is that BP and the US government reached a preliminary agreement that the oil company will set aside $20B to cover the economic damages of the GOM oil spill. BP has also started a new containment cap system to increase overall collection capacity to 28K bpd from around 15K bpd. BP shares, however, rebounded almost +10%, the biggest increase since November, yesterday after the agreement and the company decided to halt dividend and sell assets to meet the liability. Jump in BP shares also boosted stock markets.
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