|News||Oil hovers around the opening level|
|Analysis||Crude oil struggles at the beginning of the week in Europe after a long Easter holiday where the commodity been so volatile yesterday amid the absence of Europe but it declined to hit a strong support a little below $101.00 to retrace after that to the upside.|
Crude oil opened today’s session at $102.28 to reach a low of $101.83 and a high of $102.78, where it is currently trading around 101.95 a barrel.
No major data is excepted today which would trigger volatility during the session, but the sentiment is not that good as investors are still worried over the jobs sector in the world’s biggest economy and oil consumer, the United States, despite the unemployment dipped to 8.2% but a fewer added jobs than expected hit the investors’ confidence.
The Institute of International Finance helped in discouraging investors and raising the fear level that surrounds Europe in particular, as it said that Europe needs to build a bigger bailout fund and commit to cover possible financing gaps for Greece, Ireland and Portugal. Where it said also that Europe's efforts to boost its firewall last week was disappointing, and leaders need to bulk up its debt defenses to at least EUR940 billion as a first step.
The Institute also wants the IMF to reinforce its lending reserves. A timely and transparent deployment of the expanded IMF resources would help safeguard global financial stability, as it is yet unclear how much key IMF members are willing to contribute to boosting fund reserves.
All the current factors that we see in the market are negative for crude, weather from U.S. which reported a weaker job sector despite the declining unemployment or from Europe which still unstable and fears are covering it outlook.
Also, the main reason behind pushing crude to these high prices starts to vanish, which is fears over global oil supplies especially, Iran, as the country would resume negotiations with the west over its nuclear program, with hopes to come up with a joint solution to see much lower prices for oil.
In general, fears over outlook in Europe is pushing the common currency to the downside which provide the U.S. dollar with an upside momentum, where it is at the end push crude to the downside along with other different factors we talked about.