The U.S. Energy Information Administration (EIA) published a report yesterday forecasting that the price of oil should climb to $85 a barrel in the near future. They also projected that the price should remain above $80 a barrel this spring.
Later on today, the U.S. EIA is expected to publish Crude Oil Inventories, forecasted to grow by 1.9M barrels. Any lower figure should boost the price even higher. In recent weeks, data came above forecasts, but it failed to influence the price. It seems that the price of oil could remain above $80 a barrel. However, a serious boost in price should be supported by strong fundamental data. Better than expected U.S. Retail Sales to be published on Friday might push the price toward $85.
USD Dollar (USD)
The Dollar gained versus the Euro and the Pound and weakened versus the high yielding commodity linked currencies. Stock markets finished higher but weak fundamentals and fears across Europe helped the Dollar to gain. NASDAQ and Dow Jones gained by 0.36% and 0.11% respectively. Crude Oil weakened by -0.46% closing at 81.49$ a barrel. Gold (XAU) weakened by -0.14% closing at 1,122$ an ounce. Today, Federal Budget Balance is expected with -199.5B versus -42.6B prior. Crude Oil Inventories will be released and volatility in Crude prices is expected.