Crude oil managed to bounce during the Monday's trade session on news of a Saudi Oil tanker pirated by Somalia, and better than anticipated US industrial production data and colder weather forecasts. However, in general the trade is still very much tied to projections of weaker demand from a weak global economy. Another major world economic powerhouse, Japan announced it has slid into a recession, its first since 2001. December crude futures slipped by $3.66/barrel on Monday to finish the day at $54.95/barrel, it lowest level since Jan 29, 2007.
Anticipate this weeks agency reports such as Tuesday's producer price index, Wednesday's consumer price index and housing starts and Thursday's leading economic indicators reports to provide a more complete look at the nation's economic health.
Technically December Crude Oil futures remain in both a short and long term downtrends. A close above $60.30/barrel is needed to revert to a sideways trend. Allendale has the next projected major turn day in store for Crude Oil as November 18.
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