Oil prices recorded sharp gains in recent weeks and October as a whole will be one of the best performing months of 2011 for crude oil prices. The U.S. GDP rate reached a bigger than expected rate of 2.5% (Q-2-Q) and the EU agreement on the EU debt eased the concerns of the traders and helped the bullish market.
On Friday, October 28th oil price (WTI) slipped by 0.68% to $93.32/b; Brent also fell by 2.13% to $110.83/b; during October WTI rose by 13.99% and Brent by 5.13%.
U.S. oil stockpiles slightly inclined last week by 0.7 million barrels, to 1,758.9 million barrels. The oil stockpiles are still well below the quota recoded in 2010: the oil stockpiles are over 100,444 million barrels below oil stockpiles levels recorded during the same week in 2010.
Forex and Oil– October
The AUD/USD slipped on Friday by 0.27%, after it had risen very sharply on Thursday. Furthermore, the USD also appreciated against other forex exchange rates including the Euro. If the USD will further appreciate against the risk currencies (AUD, CAD) this may also affect oil prices to drop.
I speculate that during the week, WTI will revolve around $88-$95 mark and Brent around $106-$113.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.