|Previous||1.8 million barrel|
|Forecast||0.5 million barrel|
|Analysis||Crude oil continued its six day’s upside journey but it is being volatile trading within a narrow range affected by less tension from Europe after the political unrest that appeared in the Greek government along with the Italian Prime Minister which is expected to resign soon.|
Crude oil for December delivery opened today’s session at $96.86 and reached a high of $97.30 and recorded a low of $96.19, where it is currently trading around $96.33, but the stronger dollar today is affecting crude prices negatively.
News from Europe has relieved investors after they saw a conflict among the Greek government and today they might unveil the prime minister’s name, as they made a deal with Papandreou to step down and to bring a new PM to lead a coalition government, where the privilege of this that the new coalition government would accept the new 130-billion Euros bailout package.
And from Italy, the current Prime Minister Silvio Berlusconi declared that he would present his resignation if the parliament accepts the new austerity measures as soon as possible in order to cut the budget deficit and stabilize economy.
These news from Europe remained the main focus from last week, as it relieved nervous investors after shocking news that were released in the past week, but now, the future image in the eye of investors is getting better for the European continent, which indeed affected crude oil positively.
The world’s second largest economy and oil consumer, China, revealed it inflation gauge today, where it indicated eased as expected to reach 5.5% on yearly basis from a previous reading at 6.1%, and accordingly, crude oil has affected positively that the Chinese economy is getting better, which will support the global recovery pace which lost its momentum in the last period.
Volatility may remain evident in today’s trading ahead of any news that would be released by Greece, mentioning the name of the new Prime minister that would accept the new bailout package, and any signs from Italy on its political situation.
Also, volatility may be much harder on crude trading today as investors are eagerly waiting for the EIA report that is expected to show a rise in U.S. inventories by half a million barrels during past week from a previous rise by 1.8 million barrel.