|
|
| News |
Crude falls at the end of this week |
|
|
| Previous |
|
|
|
| Forecast |
|
|
|
| Analysis |
Crude oil declined since the beginning of today's session
as concerns over slowing growth and the ability of European
leaders to contain the crisis from spreading returned after
Germany approved expanding the EFSF, as now the market
speculates the next move. Crude opened today's session
at $83.08 and reached a high of $83.20 and recorded a low of
$82.00, where it is currently hovering around $82.72.
Although, crude rose yesterday backed by the U.S. data that
showed a kind of improvement in their economy, as GDP figures
showed more than expected growth in the second quarter along
with high income figures, which eased fears over the U.S.
economy that is growing slower than expectations, which
affects the fragile global recovery. Fears and concerns
remain evident in markets over the global recovery and
whether the global economy is heading into another recession
amid the deepening debt crisis in Europe, and slowing growth
in major economies, which affect oil prices negatively and
push it to the downside. Yesterday, investors shifted their
focus to U.S. data instead of Europe, in order to have some
optimistic data that would help world markets, as global
equities are facing the worst decline since a long time and
any good data can be helpful. Nonetheless, focus now returned
to Europe amid the deepening debt crisis and how the leaders
will act to avert contagion risks, as we saw the German
parliament approved on EFSF expanding measures by majority,
in order to support debt laden nation in the region and to
help slowing growth in the Euro area. Despite Euro area
leaders' efforts and actions, confidence in the world economy
in general and in European economy in particular remains
weak, as economists fear a double dip recession for the
global economy due to the fragile recovery and deepening
crisis in Europe, as for this continent, it is facing the
worst debt crisis ever and a slowing pace of growth which
puts more negative pressure on countries, especially debt
laden countries. All these factors are keeping fears and
concerns along with bad sentiment afloat, as we saw the
relief rally yesterday for markets after the American data,
but they returned to decline at the end of this week, where
investors are closing their positions and waiting for
effective actions from the European leaders that indicate
their ability to contain the crisis, where crude is a growth
sensitive commodity and can be affected significantly amid
slowing growth. Volatility may remain evident in markets, but
the negative momentum will dominate trading for commodities
in particular and global stocks in general. |
|
|
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.