By FX Empire.com
Crude oil prices rose in volatile trading on Tuesday to reach the highest level in almost three months amid concerns over the outlook of supply, where the December 2011 crude oil contract rose above the January 2012 contract, which is a phenomenon called in markets as backwardation, and reflects tight supply in markets. This overshadowed the anxiety in markets ahead of Wednesday’s EU summit.
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. Also, traders will continue to follow the developments from Europe, and whether EU leaders will be able to craft a plan to ease the EU debt crisis.
Wednesday October 26:
The U.S. will release the durable goods orders for September at 12:30 GMT, where durable goods are expected to fall by 0.7%, compared with the prior drop of 0.1%, while durable goods excluding transportation are expected to rise by 0.5%, compared with the prior drop of 0.1%.
The U.S. will release the new home sales index for September at 14:00 GMT, where new home sales are expected to rise by 1.7% to an annual rate of 300,000 units, compared with the prior estimate of 295,000 units.
At 14:30 GMT, the EIA report for crude oil inventories will be released for the week ending October 21, where the report is expected to show that inventories increased by 1.5 million barrels, compared with last week’s decrease by 4.7 million barrels.
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