Crude Oil Fundamental Analysis September 11, 2012, Forecast

Posted September 10, 2012 15:37 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
Add a comment

Category:

Fundamental Reports

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Analysis and Recommendations:

Crude Oil remained strong today, trading at 95.90 off by a few cents on poor eco data from China. (See our chart below). Chinese data weighed on the commodity as eco data showed a continuing slow down in the Chinese economy. China is one of the largest consumers of oil and energy. Crude oil rose too following an initial dip in NYMEX.

However, broadly, prices continued to remain trapped in $94-98 per barrel. Softer demand from China weighed on. Chinese trade balance data indicated that the nation’s imports of crude oil dropped 15.7 per cent in August

Last week the Chinese President announced a new program of infrastructure development to help jump start the internal economy and the PBoC is expected to offer up some additional stimulus which will support crude oil as demand will increase. Also this week traders are expecting the US to introduce a new round of stimulus to help get jobs jumping in the US.

The possible increase in demand is offset by the threats of the release of the strategic reserves as oil price increase can cause inflation but are also a threat to economic growth and recovery.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data September 10, 2012 actual v. forecast

Date	Time	Currency	Event	Actual	Forecast	Previous
Sep. 10	00:50	JPY	Adjusted Current Account	0.34T	0.39T	0.77T
	00:50	JPY	GDP (QoQ)	0.2%	0.3%	0.3%
	00:50	JPY	GDP Price Index (YoY)	-0.9%	-1.1%	-1.1%
	00:50	JPY	Bank Lending (YoY)	0.9%		0.7%
	02:00	CNY	Chinese Trade Balance	26.66B	19.80B	25.10B
	02:00	CNY	Chinese Exports (YoY)	2.70%	3.00%	1.00%
	02:30	AUD	Home Loans (MoM)	-1.0%	0.1%	1.0%

Chinese Economic Data released on September 9, 2012 actual v. forecast ( this is important )

Sep. 09