The mid-week analysis show an increase of both WTI and Brent prices. The barrels cost $90 - $110. In addition, last weeks reports show, crude oil have been under-priced, while stocks were overpriced. This was a great opportunity for traders, who could buy crude for a good price. However, this ended now.
The economy started to grow again today, and with it also the demand of crude. One of the most important factors on this was the “Stabilisation” process in the Euro Zone.
Now on what concerns the Euro Zone Debt-Crisis Plan: Tuesday’s upside move sends the signal that traders are again committed to the long side, anticipating a new growth for the economies inside the Euro monetary Zone. There was fear of a short-timed recession in Europe but this took a blow with the news of recapitalizing the banks of Europe along with restructuring the debt for Greece. At least for now, traders are preparing for a surge in demand. Nonetheless, nothing is decided for the long run. Critics say that it may worsen the situation on the long run. This in spite of the expected extra 1,48 millions sold barrels (according to reports by EIA).
Read more: fxstreet.com
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