By FX Empire.com
Crude oil prices were slightly higher on Thursday, where traders were anxious ahead of the EU summit next week amid mixed reports regarding the euro zone debt crisis, where earlier reports suggested that France and Germany are split over the mechanisms to leverage the European Financial Stability Facility fund, however, a report attributed to Reuters signaled some guidelines to increase the firepower and effectiveness of the EFSF, boosted optimism in markets.
Moreover, data from the U.S. manufacturing sector provided crude oil with more bullish momentum, after the Philadelphia Fed index expanded in October, opposite to projections of contraction, which supported crude oil prices.
The outlook for crude oil though has become highly uncertain, since the sentiment in markets has become the major market mover for crude oil prices, but overall, we still expect crude oil prices to remain under pressure, since signs of weak global growth continue to emerge, and that should weigh down on demand for crude oil in the coming period. Also, traders will continue to follow the developments from Europe ahead of next week’s EU summit.
Friday October 21:
The United States doesn’t have any major releases on Friday, and accordingly, the focus will remain on Europe and the latest developments ahead of the EU summit next week.
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