Economic Events: (GMT)
Analysis and Recommendations:
Crude Oil is currently trading 100.12 up +0.72 (+0.73%)
The USD continued its spiral downwards today, following a drastic decline after the FOMC directive issued yesterday, indicated that the Federal Reserve would keep the interest rate at the current low level until the end of 2014. With no interest increases in the US global investors lost their attraction to the USD. As the dollar fell, commodities and equities reaped the benefit.
The FOMC stated that they saw the economy recovering and growth. The only worries they noted were jobs and housing.
Today, several reports were issued. The unemployment claims jumped more then expected and housing reports were way below forecast. The bright spot was manufacturing, the durable goods report, showed that orders for machinary and airplanes was much better then expected.
The Energy Department reported that total fuel consumption increased 7.5 percent to 19.2 million barrels a day in the week ended Jan. 20. Crude oil supplies rose 3.56 million barrels to 334.8 million, the highest level since the week ended Dec. 2, according to the department.
Tensions in the middle east seemed to have subsided and there has been very little reaction to the EU’s embargo. If the rhetoric remains down, crude should fall to its level of support over the next period.