|News||Crude is volatile ahead of the NFP|
|Analysis||Crude oil couldn’t maintain its high levels around $100 where it retreated for five straight days amid growth fears in Europe as Greece is likely not to reach a deal with private bondholders this week, where low demand on crude is seen amid rising oil stockpiles, and the main factor behind pushing crude to these level, Iran eased after the IAEA said it progressed well in talks with country.|
All these factors together have formed a downside pressure on crude oil and pulled it downside to around $96 levels, especially after the IAEA said that nuclear talks progressed well and will be returning for more talks soon, which somehow further stripped crude in the past days along with rising inventories in the world’s biggest oil consumer.
Crude oil opened today’s session at $96.50 and recorded a high of $96.79 and a low of $96.17, where it is currently trading around $96.71.
Nevertheless, tension in Iran would never disappear in the current period but it may ease a bit, but in general it remains highly pushing crude upwards especially with fears that a military action would be taken from Israel on Iran which would be a disaster indeed especially for crude market.
The U.S. media reported that the U.S. Defense Secretary believes there is a big chance that Israel will attack as early as April to stop Tehran from building a nuclear bomb.
Heavily volatility will dominates markets today ahead of heavy fundamentals that would be released from Europe and US especially the United States which will release its NFP report which will show us how healthier the labor sector is in the world’s biggest economy; however, at the end of the week and still no agreement reached in the Greek debt-talks.
Today, the Nonfarm payroll from the world’s biggest economy and oil consumer is closely monitored by markets and will have a great effect as we used to see on financial markets, and since crude is a growth related commodity, it would largely affect by this report.
Where expectations that the Nonfarm payroll may show a 150,000 added jobs in the economy during January and steady unemployment at 8.5%, compared to last reading which showed that added jobs were at 200,000, which indicated that more demand on crude is likely to happen in healthier economy, but in general, volatility will be so high ahead of this report.