By FX Empire.com
Crude oil prices fell on Wednesday amid the huge pessimism that dominated markets over the outlook for global growth after weak economic data from China, Europe, and the United States, which weighed down on confidence and put strong negative pressure on crude oil prices, and despite the big drop in crude oil stock piles last week opposite to projections, yet prospects of slowing global growth dominated markets.
Moreover, the European debt crisis continued to weigh down on confidence after a weak German Bund auction, which was one of the worst since the inception of the Euro. Accordingly, the U.S. dollar soared to its highest level in seven weeks, which put crude oil prices under pressure.
The EIA report showed that crude oil stockpiles decreased last week by 6.2 million barrels, compared with median estimates of an increase by 0.50 million barrels, and the prior drop of 1.1 million barrels.
Traders will continue to monitor the developments from Europe regarding the debt crisis, where rising yields in Europe suggest investors are concerned amid the uncertainty that is surrounding the outlook of the EU debt crisis. Traders will be also watching growth figures from Germany and the U.K., but we should expect crude oil to trade within a limited range, since U.S. markets will be off celebrating the Thanks Giving holiday.
Our overall outlook for crude oil prices is still bearish, where expectations of slowing global growth, in addition to the uncertainty over the outlook the European debt crisis and its impact on growth in Europe are likely to keep crude oil prices under pressure over the coming period, however, we shouldn’t expect strong movement on Thursday due to the Thanks Giving holiday.
Originally posted here
