Crude Oil Forecast Dec. 30, 2011, Fundamental Analysis

Crude oil prices declined on Thursday as US dollar gained strength again after the US data that came mixed, as jobless claims rose last week above expectations, while Chicago PMI index came better than forecasted in December, in addition, sales of pending homes in the U.S climbed 7.3 percent above expectations of 1.5 percent.

While The euro fell to a 15-month low against the US dollar as Italian bond yields rose after the nation sold less than its maximum target at an auction, highlighting funding problems amid the region’s sovereign-debt crisis.

Still, the light is spotted on this period of time, as this year is coming in to an end as this day is the last trading day before the New Year infamous for low volume and tight ranged trading. The sentiment will start to shape as investors stay aside ahead of the start of the coming year and closely eye developments from the euro area.

The outlook for crude oil prices remains generally to the downside, as persistent fears from the EU debt crisis and signs global growth is slowing are likely to keep crude oil prices under pressure, where traders will also continue to monitor the developments from the 17-bloc euro nation and the European leaders’ latest moves to contain the debt crisis, where we expect volatility to persist through the sessions this day.

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