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1 Nov 2013
Oil hits 160-day bottoms
FXstreet.com (Chicago) – Oil fell throughout the week fueled by market participants’ reactions to worse than expected US job results, improving manufacturing economic data in China, and increasing US stockpiles.
This week, disappointing unemployment results in the US provided motives for speculators to believe the QE will not happen until next year. The Federal Reserve Bank declarations implied targets have not been met and the bank will not act until results are satisfactory. With increasing supply for oil, there was no other direction but down driving the futures contract under the key psychological $100 zone. Now dropping to 4-month lows, oil trades at $94.67, starting November with a 1.77% loss.
This week, disappointing unemployment results in the US provided motives for speculators to believe the QE will not happen until next year. The Federal Reserve Bank declarations implied targets have not been met and the bank will not act until results are satisfactory. With increasing supply for oil, there was no other direction but down driving the futures contract under the key psychological $100 zone. Now dropping to 4-month lows, oil trades at $94.67, starting November with a 1.77% loss.