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Commodity Daily News
Crude Oil Prices Face Economic Headwinds
Wednesday, 2 Nov 2011
Crude oil continues to trade in-line with improvements/declines in risk sentiment and the global economy. Yesterday's release of Chinese PMI data that is so close to the 50 boom/bust level for the survey is one reminder of the headwinds crude oil prices face. With the major engine of global economic growth signaling a slowdown it will be difficult for crude oil to mount any significant rally.
Spot crude oil retraced 50% of its decline from May to October at $94.75 before pulling back. The congestion area from September at $90.30 is the initial support followed by $84 from the October 20th low.
