Liu Xinhua, Vice Chairman of China Securities Regulatory Commission, assured energy markets by saying China will seek to promote a stable and healthy market place. His comments alleviated concerns certain Chinese state owned companies would default on heavily out of the money hedge positions.
Free now from fear of counter party concerns, energy traders have been focused on US dollar weakness. The dollar is making almost daily lows vs the euro giving crude traders confidence in long positions.
With EIA inventories showing a large draw in US crude supplies last week, fewer traders will be comfortable on the short side.
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