Crude oil remains firm in European session as concerns over Greece's sovereign risk dramatically diminishes after Eurozone leaders' pledged to offer financial supports when needed. Moreover, strong Swiss retail sales echo with market expectations that economic recovery is underway.

Switzerland's retail sales grew +4.4% y/y in January, compared with market expectation of +2.4% gain, while December's reading was revised down to +4.4%. The set of data indicated strength in domestic consumption. In another report, it's shown that the country's unemployment rate stayed at +4.1% in February. The SNB will probably leave its policy rate unchanged on Thursday but will raise Switzerland's growth forecasts as economic data released in recent months signaled accelerated pace of recovery.

Concerning industry-specific news, the state-own China National Petroleum Corp (CNPC) forecasts China's crude oil production will rise 1-2% in 2010, slightly less than previous estimate of +2%. As China's oil demand should continue soaring in coming years, it's inevitable for the country to increase reliance on imported oil.

In 2009, total oil demand was around 400M tons which production was 189.49M tons, indicating more than 50% of oil demand was satisfied through exports. Industry experts forecast oil demand will exceed 550M tons by 2020 while it's unlikely for domestic production to surge above 200M tons by that time. This means around 350M tons of oil will be sourced from foreign countries.

The findings are supportive to international oil price as demand from China helps tighten the energy market. The Chinese government has been developing strategic reserve in oil and other commodities such as base metals so as to secure supply. According to International Energy Agency, the country imported 7.9M bpd (395M tons) in 2009 and the amount is expected to increase to 8.9M bpd (445M tons) in 2010. This will increase China's oil demand as a percentage to world demand to 10.3% from 9.2%.

Gold and silver continue trading sideways around 1135 and 17.4, respectively, in European session as capitals have been shifted to PGMs instead. The benchmark contract for platinum rallies +1.7% to 1606, the highest level in 6 weeks, while that for palladium makes a 2-year high at 481.95. Recovery in auto market continues to drive PGM investments.