Commodities

BlackRock's Robin Batchelor is running a 30% underweight to oil majors in his £4.32bn World Energy fund, expecting margins will be squeezed as demand for oil intensifies and exploration costs rise.

European markets climbed this morning on news IMF head Dominique Strauss-Kahn had resigned following sex crime allegations.

BP's troubled deal with state-controlled Russian oil company Rosneft has fallen through.

George Soros, who called gold "the ultimate bubble", dumped almost his entire $800m stake in bullion in the first quarter.

The bull run in commodities is set to continue, despite the recent sell-offs and mounting fears some assets in the sector are overheating, according to asset allocators.

TIME TO CUT COMMODITIES?

Crispin Odey, the founder of Odey Asset Management, is buying UK banks in the view increased capital requirements will boost profit margins.

Clive Capital, the world's largest commodity hedge fund, lost $400m following a collapse in the oil price last week, the FT reports.

Schroders has renamed its gold and metals fund and changed the investment objective to allow it to invest in a different set of underlying commodities, including gold equities for the first time.

The price of gold soared yesterday to hit a new record before falling back following the death of the world's most wanted man, Osama Bin Laden.