•The rocketing WTI prices in the last 24 hours are linked to a series of bullish technical and fundamental factors, amongst which are the upcoming expiry of the October contract this Friday, the covering of large call-option positions, and the building of length ahead of an anticipated interest rate cut by the US Federal Reserve, sources said.

•Most investors expect the Fed to trim a quarter point from the federal funds rate, which has been at 5.25% since June 2006, and some are calling for a bolder half-point reduction, citing rising US recession risks. This may result in a further rise in fears surrounding supply tightness in the US ahead of the winter, keeping prices underpinned, with the latest OPEC output rise of 500,000 b/d showing little effect so far.

Updated: September 18, 2007