By FX Empire.com
Crude oil prices rose on Friday, where rising hopes that EU leaders will be able to craft a plan to ease the European debt crisis at next week’s EU summit boosted demand for higher yielding asset, which provided crude oil prices with strong bullish momentum. Moreover, expectations of a colder winter season in the United States provided crude oil prices with more bullish momentum on expectations of higher demand for energy.
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.
Monday October 24:
We don’t have any major fundamentals from the United States on Monday, which means that the focus is likely to remain on Europe, and whether EU leaders will be able to reach an agreement to solve the euro zone debt crisis.
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