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Crude Oil Forecast Dec. 14, 2011, Fundamental Analysis

By:
FX Empire Editorial Board
Updated: Mar 5, 2019, 13:27 UTC

, after the International Energy Agency (IEA) confirmed that oil demand will grow next year despite the expected economic slowdown. While crude oil prices

Crude Oil Forecast Dec. 14, 2011, Fundamental Analysis

Crude Oil Forecast Dec. 14, 2011, Fundamental Analysis
Crude Oil Forecast Dec. 14, 2011, Fundamental Analysis
, after the International Energy Agency (IEA) confirmed that oil demand will grow next year despite the expected economic slowdown. While crude oil prices received support from the unconfirmed reports, which signaled thatIranwill close theStrait of Hormuzfor military practice.

Traders will be eyeing the FOMC rate decision later on Tuesday, where the majority of analysts expect the FOMC to leave the current monetary policy unchanged, while on Wednesday, traders will be following the Import Price Index from theUnited States.

Nonetheless, traders will also continue to monitor the developments from the 17-bloc euro nation and the European leader’ latest moves to contain the debt crisis, where we expect volatility to persist through the sessions this week.

The EIA report is expected to show on Wednesday that crude oil stockpiles decreased by 2.5 million barrels, which could provide crude oil prices with some bullish support.

The outlook for crude oil though has become highly uncertain, since under the current pessimism wave that is dominating markets, we should expect crude oil prices to extend the losses. Nevertheless, we see overall economic conditions as still being weak, and that should put negative pressure on crude oil prices as well, so we advise traders to be extremely cautious, especially since the EIA report for crude oil inventories will be released on Wednesday.

We should take in mind that the general outlook for crude oil prices is still bearish, where expectations of slowing global growth, in addition to uncertainty that continue to surround the outlook the European debt crisis and its impact on growth in Europe are likely to weigh down on crude oil prices over the coming period.

Wednesday December 14:

TheUnited Stateswill join the session at 13:30 GMT with the import price index for November, where the monthly index is expected to expand by 1.0% from the previous drop of 0.6%, while the annual index previous reading was 11.0%.

At 15:30 GMT, the EIA report for crude oil inventories will be released for the week ending December 09, where last week crude oil inventories increased by 1.3 million barrels, and crude oil inventories are expected to decrease by 2.5 million barrels.

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