By Commoditiesmansion.com – Crude oil prices rose back above $112 on Tuesday as a result of a weakening U.S. dollar, where crude oil prices were under pressure earlier after Saudi Arabia signaled its concerns over the effects of rising oil prices on the global recovery, yet strong earnings and rising consumer confidence in the United States boosted confidence, and accordingly, crude oil prices rose back.
We maintain our bullish outlook for crude oil prices, although we still expect volatility to dominate crude oil prices over the upcoming period, as we might witness some downside corrections, nevertheless, the bullish trend should continue for a while.
Wednesday 12:30, the Durable Goods Orders index will be released for the month of March, where durable goods dropped in February by 0.9%, however, expectations show that durable goods probably increased by 1.5% in March. Moreover, durable goods excluding transportation declined by 0.6% in February, and median estimates suggest that durable goods excluding transportation increased by 2.2% in March.
Wednesday, 14:30, The Department of Energy will release the weekly petroleum status for the week ending April 22, where the prior report showed that crude oil inventories decreased by 2.3 million barrels, and Wednesday’s report is expected to show that inventories inclined by 1.6 million barrels.
Wednesday 16:30, the Federal Open Market Committee will announce the decision on interest rates, where the FOMC will probably leave interest rates unchanged, also the FOMC will probably leave QE2 unchanged to run through June, despite the recent rise in energy prices, which will probably lead to a “transitional” increase in inflation rates according to the Fed.
Wednesday 14:15, the Fed’s Chairman, Ben Bernanke will hold a press conference for the first time to discuss the Fed’s latest projections on growth, inflation, and unemployment, we should expect markets to give great attention to the press conference, since it’s the latest effort from the Fed to be more transparent in order to improve communications with the public.
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