Crude Oil Forecast
July 2nd, 2009 Posted in Analyst Picks
Crude Oil currently stands at $67.70 a barrel, the lowest price level it has been for the whole week. There are a number of important factors that have led to this drastic slide in Crude prices. Firstly, Crude Oil has been overvalued in the past several weeks; therefore the current rate may be a price correction. Additionally, the global economic recession may come to an end in the not too distant future, but weak demand is pushing down the price. Thus the spiraling unemployment rate of the industrialized nations will no doubt push down demand for Crude even further in the long term.
If today’s data from the U.S., such as the Non-Farm Employment Change and the Factory Orders are negative, Oil will continue to go bearish. However, good results could lead to a sudden bullish reversal for the black gold in the short-term. An additional explanation for the current bearish trend may be that many investors are likely to have done profit-taking by selling-off Crude Oil. The volatility in the market is likely to continue, as long as the world’s leading economies are showing no clear positive direction.
For the upcoming week, traders are advised to enter the commodity, and buy Crude Oil on lows, and sell it on highs. This seems to be the most profitable strategy. Traders are also advised to follow the news coming out of the leading economies, as positive data may have a bullish impact on Crude prices. If you want to start making profits now from Crude Oil, Silver, or Gold, why not open an account with ForexYard?
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Tags: Crude Oil, Crude Oil forecast, Factory Orders, Global economic recession, Non-Farm Employment Change
