Fundamental Oil Report (2010-08-30)

Crude oil futures opened today at $75.50 recording the highest so far at $75.58 and lowest of $74.81 and currently hovering around $74.90 lower by 0.36%. Crude has settled on Friday at $75.17 higher by 2.4% the most in six days.

Investors are still captivated by downside expectations for the prospects of the global economic recovery; Feds Bernanke eased the concern with pledges to support the US economy and its continued recovery.

The comments from Bernanke and the move by Japan to expand its loan program in an attempt to aid the recovery and stem the yen’s gains are still preserve with a skeptic eye as investors started to see that the move might not be sufficient to contain the slowdown. The jitters supported the dollar again and that pressured crude further, the index gauging the dollar’s performance against its six major counterparts moved higher this morning recording the highest at 82.93 after opening at 82.74.

As for Brent futures for October settlement they also declined slightly by 0.23% towards $76.47 till now after ending Friday higher by 2.2% at $76.65. Today we expect further clues from the US economy over the pace of deterioration in the recovery, and though the downside revision to the GDP was less than expected on Friday the economy is losing steam.