Feb. 25
Analysis and Recommendations:
Analysis and Recommendations:
Crude Oil gave up early morning gains to trade at 102.26 recovering just 6 cents after a gain in the Asian session of almost 30 cents. Brent Oil moved to the red giving up 6 points to trade at 109.80. There was not much in the way of global data except from Germany where Ifo data met expectations and Eurozone CPI also met expectations but remained low. Forecasters predicted a return of more cold weather in the coming weeks after a brief warm spell.
Analysts, however, have said oil prices could reverse direction due to a tempering of global demand and ample supplies. A slower increase in Chinese property prices has added to jitters about the strength of the world’s No. 2 economy. A report on manufacturing in China last week suggested global economic growth could weaken, which would reduce demand for gasoline, diesel and jet fuel.
Supplies also appeared to be robust in the U.S. despite the higher demand, with weekly crude stocks on a rising trend. WTI advanced the past six weeks, the longest rising streak in a year, as crude inventories at Cushing, Oklahoma, shrank and cold weather bolstered fuel demand. Another blast of freezing air is forecast for the central and eastern U.S. this week as two storms threaten to bring snow to the Northeast, according to the National Weather Service.
Crude stockpiles at Cushing, the delivery point for WTI contracts, fell to their lowest level since October in the seven days through Feb. 14, government data show.
Crude prices increased after the final communiqué from the two-day meeting of the world’s top economies, which account for around 85% of the global economy, promised to focus on increasing investment and employment, among other reforms. At the meeting, which was held in Sydney, the group embraced a goal of generating more than $2tn in additional output over five years while creating tens of millions of new jobs.
Oil prices also gained support from supply worries due to domestic conflicts in Libya and South Sudan, as well as escalating protests in Venezuela.
Source: http://www.fxempire.com/fundamental/fundamental-analysis-reports/crude-brent-oil-fundamental-analysis-february-25-2014-forecast/
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