Crude oil prices rose slightly last week in volatile trading amid the high level of uncertainty that is surrounding the outlook of the European debt crisis on renewed fears that Greece could be facing a disorderly default.
Meanwhile, economic data from the United States showed mixed results, however, markets were focused on the Jobs report for October, which signaled that job growth is still weak in the United States, although unemployment fell unexpectedly to 9.0%, the lowest level since April.
Traders are likely to use next week to adjust their positions as they will reflect on the recent data from Europe and the United States, where the retail sales report will be released from both Europe and the United States.
Our overall outlook for crude oil prices is somewhat neutral with a downside tendency, as the outlook for global growth is worsening due to mounting concerns from Europe and the fact that major economies around the globe are still weak, and that should put negative pressure on crude oil prices. Nonetheless, if the outlook for global growth improves, crude oil prices are likely to rise in that case.
Highlights for this week that will probably affect Crude Oil direction are:
Monday November 07:
At 20:00 GMT the United States is expected to release the consumer credit figure for September, which could have improved to $5.100 billion from -$9.501 billion.
Tuesday November 08:
We don’t have news from the United States, and accordingly, traders will be focused on the developments from Europe.
Wednesday November 09:
The United States will start the session at 15:00 GMT with the wholesale inventories for September, with expectations that the index could have expanded by 0.6% from 0.4%.
At 14:30 GMT, the EIA report for crude oil inventories will be released for the week ending November 04, where last week crude oil inventories increased by 1.8 million barrels.
Thursday November 10:
The United States will join the session at 13:30 GMT with the import price index for October, where the monthly index is expected to expand by 0.2% from 0.3%, while the previous annual reading was 13.4%.
The Untied States will also release the trade balance figures for September, with expectations that the trade deficit could have widened to $46.2 billion from $45.6 billion.
The United States will also provide the initial jobless claims figure (November 5), with expectations that the number of claims could have increased to 400 thousands from 397 thousands.
At 19:00 GMT the United States will join again with the monthly budget statement for October, where the budget deficit could have narrowed to $110.7 billion from $140.4 billion.
Friday November 11:
The United States will start the session at 14:55 GMT with the University of Michigan confidence in a preliminary reading for November, with expectations that the confidence could have slightly improved to 61.0 from 60.9.