WTI crude oil prices continue to trade flat as investors wait to see if Spain will formally request a bailout and initiate a European Central Bank bond-buying program.
Fears of continuing slowdown of economic growth was renewed this week on comments from the International Monetary Fund (IMF) in which the IMF cut global growth outlook and warned it needs to take control of the debt crisis, referring to Spain and Greece.
WTI crude oil price continues to trade slightly higher in the $2.07 range on the first session of the fourth quarter. Price has been holding on positive comments from European Union Commissioner Olli Rehn about the Spanish banking system’s stress tests, suggesting the euro zone debt crisis could be contained.
Brent crude oil futures are slicing the 50-day and 200-day moving averages at once, while West Texas Intermediate is testing its 50-day moving average after the world’s largest oil exporter Saudi Arabia said it would take action to keep prices in check, raising expectations of increased supply.
Energy traders began the European session with caution thanks to growing anxiety over the global economic landscape.
Federal Reserve Chairman Ben Bernanke did not introduce a third round of quantitative easing (QE3) in his speech at Jackson Hole on Friday. But he did put forth the framework for what one analyst termed “QE forever” — which could lead to permanently high oil prices.
Friday’s best web covers Indian companies seeking access to China, a summary of the Turkish information and consumer technology sector, collapsing tin prices, Essar’s procurement of Colombian oil, and the “toilet of the future.”
Today the U.S. Commerce Department released surprise results for retail sales, up 0.8% in July versus analysts’ expectations of a 0.3% increase. The results immediately pushed crude oil higher on expectations of growth and the possibly beginnings of economic recovery.