Crude is volatile at the end of the week but with an upside momentum
Crude oil joined a mild correction wave in attempts to erase yesterday's losses which achieved when the industrial production in the world's biggest economy dropped sharply, although, oil is currently trying to benefit from the weakening dollar which gives oil positive momentum. Oil fluctuates at the end of the week but with a mild upside momentum, as it declined heavily in the past two days amid signs from Europe that leaders are unable to contain the crisis by taking serious measures that would be enough to solve the crisis. Oil is taking an upside rally despite negative factors that would affect it today, as Fitch rating agency has downgraded the rating of seven global banks among Europe and United States, citing "increased challenges" in the financial markets. Crude oil opened today's session at $93.34 to reach a low of $93.30 and a high of $94.36, where it is currently trading positively around $94.22. Volatility and fluctuations will be evident today as we said due to lack of fundamentals from major economies except the CPI index from the world largest economy which is expected to maintain its levels amid mixed factors. Yesterday, the US industrial production unexpectedly dropped by 0.2 percent in November from 3.6 percent for the first time in seven months, mainly due to the current slowing global economy and crisis in Europe that limits American exports, which affected crude significantly and added negative pressures on the commodity that the world's biggest consumer is struggling. On the other hand, crude will be so volatile today as we signaled, as investors will close their positions amid high uncertainty which darken the future picture for market movements, therefore, investors will likely try to avoid any unexpected loss. Confidence levels in Europe remain low amid signs of dark future for the continent, as measures that took by leaders, did not convince markets that there would be enough to solve the crisis, where the ECB is avoiding intervene in bond market to stem the rising borrowing costs, as it's not its mandate. The Italian Lower House of Deputies will vote on the austerity package worth 30 billion euros today, while the Upper House of Senators will hold the vote later during next week, where it is expected to pass easily due to the country's need to this austerity to reduce its budget deficit.