Crude Oil Forecast Dec. 27, 2011, Fundamental Analysis

Crude oil prices rose on Friday as Baghdad faced today series of bombings that killed more than 72 people, fueling concerns about possible oil disruption to Europe, especially in light of Iranian naval started military, and that will continue for ten days, which raised fears of disruption or interruption regarding crude oil supplies for Europe.

As traders switched on holiday mode with Christmas on doors, so trading volumes ebb down and market movement is rather limited in a tighter range before the New Year’s holiday, yet with slight punch of risk. Sentiments will start to shape as investors remain cautious ahead of the New Year’s holiday but traders will be mostly concerned about the latest development from the 17-bloc euro area.

The outlook for crude oil prices remains generally to the downside, as persistent fears from the EU debt crisis and signs global growth is slowing are likely to keep crude oil prices under pressure, where traders will also continue to monitor the developments from the 17-bloc euro nation and the European leaders’ latest moves to contain the debt crisis, where we expect volatility to persist over sessions next week.