By FX Empire.com
Crude oil prices fell despite the EIA report showed crude oil inventories fell below expectations last week, as investors are focused on Italy and Greece, as political instability in the two nations is in fact stalling the reform which is forcing the nation to remain more exposed to speculation and market pressure which caused Italy’s borrowing costs to smash a euro-area record high.
Accordingly, traders are demanding safer havens and are mostly less appealed to higher-yielding assets on Wednesday.
The EIA report showed that the inventories fell by 1.4 million barrels last week, opposite to expectations of an increase by 0.5 million barrels, and the prior increase of 1.8 million barrels.
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.
Tuesday November 08:
Canada will release the international merchandise trade balance for September at 13:30 GMT, where the trade deficit is expected to narrowed to 0.56 billion CAD from the prior deficit of 0.62 billion CAD.
The U.S. trade figures are due at 13:30 and the trade deficit in September is expected to widen to $46.0 from $45.6 billion.
The weekly jobless claims are also due at 13:30 GMT, after the latest report signaled a gain of 397 thousand.
Originally posted here
