Crude & Brent Oil Fundamental Analysis October 9, 2014 Forecast

Analysis and Recommendations:

Crude Oil fell almost $1.00 to trade at 87.87 while Brent Oil gave up 84 points to reach 91.27.Crude fell below $88 a barrel on Wednesday, dropping for a second day following larger-than-expected crude inventories, weaker economic growth forecasts and lower oil demand projections. The spread between Brent and West Texas Intermediate narrowed from around $8 a month ago to around $3.24, making seaborne North Sea Brent-linked grades more attractive. The U.S. Energy Information Administration trimmed its forecast for U.S. 2015 oil production to 9.5 million barrels per day from 9.53 mbpd a month earlier. U.S. crude stocks rose by 5.1 million barrels to 360 million in the week to Oct. 3, larger than analysts’ expectations of a 1.5 million barrel build, according to data from industry group the American Petroleum Institute on Tuesday. Iran Oil Minister Bijan Zanganeh said OPEC has no plans to hold an emergency meeting to discuss the recent slide in oil prices. Libyan oil production has slipped below 900,000 barrels per day, from up to 925,000 bpd last month, due to a sit-in protest at Sirte Oil Company by local residents demanding jobs. Crude oil can move in range to down for the day.

The IMF yesterday said economic growth in the US which was aiding a helping hand to the global economy as other major economies still remained under doldrums was getting weaker as equated to IMF’s own forecast a couple of month back. It added, some financial markets may be overheating backed by sustained period of near-zero rates which pushed the major equity markets globally down with the US sliding around 1.5% yesterday. The agency, trimmed its global growth forecast to 3.3% for 2013 as compared to 3.4% earlier whereas reduced the next years forecast too.

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
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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 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction