Crude Oil Fundamental Analysis Jan. 20, 2012, Forecast

Economic Events: (GMT)

The only item on the calendar in the US is the Existing Home Sales report.

Analysis and Recommendations:

Crude Oil is currently trading at $101.95.

Support and Resistance levels for tomorrow      
S:            100.97   100.39   99.36
R:            103.73   102.98   102.06

Crude oil prices are up today even though the IEA’s forecasts of a larger drop in the crude demand in this year, after data showing that consumption fell in the last quarter of 2011 According to the institute, the oil demand for 2012 was cut to 1.1 million barrels a day, from 1.3 million.The IEA believes that we will still see industrial and manufacturing slowdown through out this year and lower consumer demand.

However, investors realize that worsening conditions in the euro zone and increasing tensions in the Iran-West relations would push up prices. The on going problems in Nigeria and the trouble in the middle east.

Inventory reports are still due but are expected to come at forecast. Crude is still considered a buy at the 101.95 level, buy into the dips.

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