|News||Oil fluctuates at the end of the week|
|Analysis||Crude oil rose for the fourth consecutive day after central bankers have showed that they will move and take effective actions when the market needs to, as yesterday ECB and BoE have tried to increase liquidity in markets to avoid a credit crunch, which pushed crude prices significantly with hopes that European leaders will contain the crisis.|
Oil for November delivery is currently trading around $82.70 a barrel after recording a high of $83.01 and a low of $82.10 after it opened the session at $82.49.
The European Central Bank yesterday kept his monetary policy unchanged in order to ensure price stability, where Trichet said that the current economic conditions remain highly uncertain, and inflation will remain elevated above the Bank’s target of 2.0% over the coming period and intensified downside risks facing the economy.
Also, in order to maintain good liquidity in markets, Trichet also said that the ECB launched a 40 billion euros covered bonds purchases starting from November and it will offer 12 and 13-month loans for banks with full allotment and finally will extend money operations at least till July 2012.
ECB’s moves have eased some of the fears that were in markets that the European leaders wouldn’t take action, but somehow, these measures have showed investors that they will take action when markets needed, and they will take further actions in order to contain the crisis from spreading.
On the other hand, the Bank of England increased the Asset Purchases Facility by 75 billion to be 275 billion pounds to support fragile growth that is seen in the last period, ignoring the inflation concerns that's double the bank’s target.
Where the bank signaled that slowing growth and low exports are due to the European crisis and the fragile global recovery that affected the UK economy.
The focus would shifts today over to the U.S. economy, waiting for the Nonfarm payrolls that is expected to show 55 thousand added jobs in September which will ease investors’ concerns over the bad labor sector, after the ADP reported 91 added private jobs last month.
Volatility may remain evident in markets ahead of the U.S. labor data that may affect crude prices significantly, where investors are hoping for good figures.