Analysis and Recommendations:
Crude Oil Fundamental Analysis Jan. 18, 2012, Forecast
Crude-oil futures rose today on economic news on China’s fourth-quarter gross domestic product in higher than expected and comments from Saudi Arabia bid prices higher. Crude for February delivery added $2.01, or 2%, to end at $100.71 a barrel on the New York Mercantile Exchange, back to above $100 for the first time since last week.
Light sweet crude for February delivery was up $1.68, or 1.7%, to $100.37 a barrel on the New York Mercantile Exchange.
Also the Saudi Arabia oil minister said oil at $100 a barrel is acceptable to the kingdom, the world’s top oil exporter.
Crude found support in a weaker dollar, with the dollar index trading at 81.093
A softer USD tends to encourage investment in crude, as it makes the commodity more affordable to holders of other currencies.
Support and Resistance levels for tomorrow S: 99.89 100.13 100.44
R: 101 101.24 101.55
Crude is a strong buy, and should test the 101.24 resistance level.
Originally posted here
