Crude oil declined on Friday on news that Saudi Arabia will increase its oil production, which put negative pressures on oil prices, where concerns over the pace of global growth, which is slowing down, have added more negative pressures on oil prices, amid the mixed sentiment in the markets amid the high uncertainty.
Crude oil opened today's session with a decline at $98.75 a barrel, where the lack in the economic data kept oil trading within a limited range, where it recorded so far a high of $99.29 a barrel and a low of $98.60 a barrel, as it is currently trading at $98.88 a barrel.
Asian markets dropped today on concerns over the outlook for global growth, further keeping the volatility and downside pressures evident on crude. Last week OPEC kept its oil production unchanged, after the members were unable to reach an agreement about oil production which emerged temporarily bolstered oil's gains as it was widely expected for production to be increase, yet as news emerged late last week that Saudi Arabia will increase its oil production by almost 1.14 million barrels opposing Venezuela, Iran and Nigeria which are against any increase in oil production as seen in the OPEC meeting.
Oil is expected to keep trading in a limited range waiting for China's May data, with the lack of fundamentals today. Data to be released tomorrow is expected to show May's inflationary pressures continued to rise with the CPI projected higher at 5.5% annual gain from the previous 5.3% which will fuel speculation for more Chinese monetary policy tightening which could dampen growth and accordingly demand from Oil's second largest consumer.
Volatility is dominating today's trading due to the lack of economic data and the absence of Australia, France, Germany and Switzerland from the financial markets; oil is expected to continue its downside move on the short term on concerns over the global growth which is showing a negative signs and the prevailing debt crisis which continues to agitate markets.
The USDIX index declined slightly today and opened at 74.89 and recorded a high of 74.95 and a low of 74.76, where it is currently trading around 74.79. The market is currently fluctuating on the back of the heavy movement seen on Friday, as crude corrects slightly the decline yet still expected to retain the bearishness for this week.