|News||Crude oil is taking a breath|
|Analysis||Calmness is dominating crude trading today after yesterday’s huge fluctuations, as investors are looking for a cue in the market to know what to do, but lack of fundamentals in Europe is forcing investors to stay out of the market until a major factor appears, especially that we are at the end of the week and investors will be extremely cautious.|
Crude oil opened today’s session at $105.44 reaching a high of $105.62 and a low of $105.36, where it is currently hovering among these levels.
We can see dear reader the low trading in the market especially in crude trading after high fluctuations which seen yesterday, as reports showed that the United States has released its oil reserves to fight the high oil prices which managed to push the commodity sharply downwards, but it been denied by the country removing the downside pressure on it.
The effect from this report that showed coordination between Britain and the United States in releasing oil reserves in order to halt rising oil prices, have countered the positive effect from many other factors such as strong labor and manufacturing sectors in the States.
However, the commodity relieved after the country denied these assumptions and rumors, which allowed the commodity to pick up closing the session with a slight losses.
Actually, we noticed after this move by the States that the strong upside momentum which been provided by tensions on Iran’s oil supplies has been eased significantly which left the commodity vulnerable for any negative factor.
It’s been obvious now that crude is going to decline if fears over global oil supplies continued to ease, as we saw yesterday a strong and encouraging U.S. data that added positive signs that the economy is picking up and moving in the right direction, but it couldn’t push crude upwards, adding to these positive factors the weakening dollar which achieved losses yesterday after two days of gains.
Dear reader, volatility will be high as it is the end of the week where investors try to close their positions averting any unexpected losses, also, ahead of major data from the United States, as the country will release the CPI figures with expectations to rise on monthly basis, beyond that it will also show us a good figures from its industrial production as expected.