Crude Oil Fundamental Analysis Jan. 26, 2012, Forecast

Economic Events: (GMT)

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Analysis and Recommendations:

Crude Oil is currently trading 99.70

Crude dropped earlier today  as reports showed that U.S. crude supplies rose more-than-expected last week, while a broadly stronger U.S. dollar also weighed heavy.

The U.S. EIA stated in its weekly report that U.S. crude oil inventories fell by 3.6 million barrels in the week ended January 20, above expectations for a modest 0.9 million barrel increase. U.S. crude supplies fell by 3.4 million barrels in the preceding week.

Total U.S. crude oil inventories stood at 334.8 million barrels as of last week, remaining in the upper limit of the average range for this time of year

At the conclusion of the FOMC statements a while ago, the USD plunged, Gold soared over 35.00 and Crude began to climb on the weakened dollar.

Crude soared from the low of 97.62 to just over 100.00 and is currently sitting in the 99.70 range holding steady.

The Fed Committee pledged to continue to keep interest rates low until 2014 weakening the USD.

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