Crude & Brent Oil Fundamental Analysis October 27, 2014 Forecast

Analysis and Recommendations:

Crude Oil declined by 64 cents to trade at 81.45 while Brent oil edged down 71 cents reaching 86.11. Brent Oil  was expected to climb after reports showed that Saudi Arabia pumped less oil last month than expected and is expected to continue to cut production.  Oil was trading lower on both sides of the Atlantic, retreating after a bounce the previous day and still hovering close to multiyear lows. Oil is now trading at such a low level that it’s started to stimulate some demand, said analysts at Energy Aspects.

A major factor economics and politicians understand at this sudden and historical time, in a matter of a very few years, is the sudden explosion of oil production inside the US, part of that fracking scandal across the US, about this unorthodox and dangerous ways of getting oil from shale. The end result has been that the US is producing vast amounts of oil, this is becoming available in export markets, and it also means the US buys less oil from the rest of the world. And that is shaking up the oil markets around the world, converting what was a scarcity into a glut, and so the prices go down. Understandably, the Saudis and other major producers do not want to have to cut production in their countries, losing money simply to accommodate the explosion of the production in the US.

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.

WEEKLY

This Week in Petroleum
Release Schedule: Wednesday @ 1:00 p.m. EST (schedule)

Gasoline and Diesel Fuel Update
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Weekly Petroleum Status Report
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Today’s economic releases actual vs. forecast:

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 27 12:30 Germany Eur 2.0bn new 12M Bubill (Oct 2015) auction

Oct 27 18:30 Italy Announces details of BTP/CCTeu auctions on Oct 30

Oct 27 12:10 Italy BTPei/CTZ auctions

Oct 28 12:10 Italy BOT auction

Oct 28 19:00 US 2Y Note auction

Oct 29 12:03 Sweden Bond auction

Oct 29 12:30 Germany Eur 4.0bn Aug 2024 Bund auction

Oct 29 17:30 US 2Y FRN auction

Oct 29 19:00 US 5Y Note auction

Oct 30 12:10 Italy BTP/CCTeu auctions

Oct 30 19:00 US 7Y Note auction