|News||Crude rebounds from the biggest weekly loss since 2008|
|Analysis||Crude Oil futures rebounded from their lows with the start of the week to recover some of the losses endured in the previous week, after record drops and the worst week since 2008!|
Crude oil futures are hovering higher around $99.47 a barrel rebounding from the low of $97.41 a barrel and slightly down from the low of $99.68 a barrel. The gains were back in the market with a slight sigh of relief in the market and rising Asian equities on the quickening pace of hiring reported in April from the United States on Friday.
The rebound was a correction to the selloff that was very extensive and severe last week as futures leaped nearly 2.0% today. The market was over optimistic when comments were against the rally in prices and when the selloff extended the comments turned again the opposite direction! The Qatari oil minister Mohammed bin Saleh al-Sada said yesterday that the global economy is not that week to justify the slump!
We can see the recovery today come inline with the rebound in Asian shares and the dollar’s drop. The dollar index that gauges greenback’s performance moved to the downside from the high of 74.81 to the low of 74.44 and now hovering around those areas.
Middle East tension was further support to the market, where security forces over the weekend suppressed again protests in Syria and Yemen while new clashes erupted in Egypt killing 12 people.
The situation in Libya is not getting any better either and that was supporting the recovery seen in the market today after crude slumped 15% last week, the worst since December 2008.
We do expect the volatility to extend further this week and without a clear recovery in the sentiment in the market over growth and the debt crisis, crude will likely continue the downside correction and the rise will be now only correctional for the heavy slump seen last week.
Trade figures and retail sales from the US this week will either support or berate the jobs report with eyes still concentrated on the oil rich MENA region and the political developments in the region.