Crude Oil Monthly Fundamental Forecast December 2012

Crude Oil ended the month at 88.95 remaining in a fairly tight range between 88.99 and 85.38 with lower growth forecast and increasing supply, there was no room for crude in November. Geopolitical tensions grew in the Middle East supporting prices, but none of the oil producing countries was involved.

Tensions with Iran seemed to ease and negotiations were making headway, as traders watched numbers from China closely to see if they can see a rebound or expansion.

U.S. crude oil production (including lease condensate) averaged almost 6.5 million barrels per day in September 2012, the highest volume in nearly 15 years. The last time the United States produced 6.5 million barrels per day or more of crude oil was in January 1998. Since September 2011, U.S. production has increased by more than 900,000 barrels per day. Most of that increase is due to production from oil-bearing rocks with very low permeability through the use of horizontal drilling combined with hydraulic fracturing.  OPEC also continued to produce records amount of oil with Saudi Arabia pumping at almost full capacity.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

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