Crude oil prices dropped heavily on Tuesday from the highest level since September 2008 at $113.43 a barrel reached on Monday, after Goldman Sachs forecasted commodities including oil are expected to undergo a deep correction after rising heavily over the past period.
Moreover, the International Energy Agency said that high oil prices will hurt global demand on oil and slowdown the global recovery, accordingly oil prices extended their drop after rising above $113 on Monday.
We should expect crude oil prices to undergo a correction over the short term, however, over the long term, we should expect oil prices to maintain its upside trend.
Wednesday 12:30, the U.S. will release the retail sales index for the month of March, where retail sales rose in February by 1.0% and expectations signal that retail sales rose by 0.5 percent in March, as consumer spending continues to improve over a gradual pace.
Wednesday, 14:30, The Department of Energy will release the weekly petroleum status for the week ending April 8, where the prior report showed that crude oil inventories increased by 2.0 million barrels, and the report is expected to show that crude oil inventories increased by 1.0 million barrels.
Wednesday 18:00, the Fed will release the Beige Book, where the Beige Book is expected to show that economic activities continued to expand at a moderate rate, while conditions in the labor market improved as well, and inflationary pressures continued to rise amid rising energy prices.
Originally posted here
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