NewsPreviousForecastAnalysisCrude futures dropped this morning amidst weak trading overshadowed by the holidays Asian markets, spearheaded by Japan. Although oil prices faced negative pressures after the dollar managed to gain amidst renewed fears regarding the debt crisis in Greece, despite of the agreement offered by the European finance minister of providing an aid package worth 110.00 billion euros. This also comes alongside fears that overwhelmed markets regarding China taking several procedures to rein in on inflation.
Crude today opened around $86.23 per barrel achieving its highest around $86.77 and lowest around $85.81, while it currently trades around $86.00 per barrel. Meanwhile, crude closed last Friday around $86.00 per barrel gaining by $0.40 from the previous day.
Despite of the agreement by the European finance ministry to offer a support plan for Greece worth 110.00 billion euros, Greece vowed on taking the necessary steps to reduce its budget deficit and overall spending; therefore, slightly calming markets, although fears have made a comeback especially regarding how many obstacles are in the way of allowing aid to quickly reach Greece. All of this is due to the worries regarding the obstacles other countries are facing in the euro zone tied to the Greek budget deficit.
Furthermore, China announced that it will be raising its bank reserves to curb inflation, which could in its role effect the growth and reduce demand at a time countries like Chine are leading the way with their economic growth in the world.
As for the RJ/CRB commodity index, it gained Friday by 2.42 recording 277.71; whereas Brent dropped by $87.22 per barrel valued at $0.22 or by 0.25%.
In the meantime, the US agenda today consists of data that might effect trading, especially the ones that are related to how much growth the industrial sector and personal consumption has been recorded in which is considered to be the largest energy consumer in the world.