Crude oil recovered on Thursday with the weak dollar and rebound in European markets recovering from heavy losses on a needed correction.
Electronic trading was supportive of gains for crude that reacted to the reported heavy drop in commercial crude inventories from the United States late Wednesday. With the absence of US markets floor trading was closed and will resume for contracts settlement on Friday in an early closing day as well on Friday.
Steady German GDP and better than expected IFO figures eased the fears over Germany’s stability after the bond auction and helped the markets recover. Also reports from Saudi Arabia that four people were killed and nine wounded in the eastern province further affected the market and fueled more fears regarding the unrest in the Middle East and risk of disruptions for crude supply from the oil rich region.
On Friday the U.S. markets will return for a short trading session as they are scheduled for early closing and the trading volumes will still be low. Nevertheless, we still expect choppy trading and volatility to control the pair
Originally posted here
