The news releases reporting that the debt crisis in the EU will be solved have a positive impact on crude oil prices.
Despite that, comments made by the People’s Bank of China on the monetary policies aimed at reducing the inflation, may significantly lower the demand for oil, which will affect its price.
On Wednesday the published reports on crude oil inventories had almost no impact on the market as this week’s inventories has been the biggest since 1987, which testifies to strong bullish sentiments.
The technical analysis of the crude oil chart also indicates the bullish sentiments however the significant growth of the last few days cannot prove that there will be any upswing today. That is why we expect the price to move sideways within the 86-87.5 range.
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Text: Andrei Mikhalets, the Department of Market Sentiment Analysis, Masterforex-V Academy.
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