Crude Oil Daily Fundamental Analysis for May 23, 2011

Crude oil prices extended the drop on Friday, where another wave of pessimism dominated global markets amid the lack of economic news from the United States, where speculations mounted that growth in Germany was slowing down, while Greece’s fiscal problems continue to dominate investors on expectations Greece will restructure its debt. The pessimism sent the U.S. dollar higher against major currencies, and accordingly, crude oil prices remained under pressure on Friday.

We still maintain our bearish short term outlook for crude oil prices, since pessimism continues to dominate markets due to the uncertainty over global growth prospects, in addition to the recent data from the United States, which signaled economic weakness persisted through the second quarter, and the ongoing European debt saga, which continues to weigh down on confidence levels all around the globe, and that will put further pressure on crude oil prices.

Source: http://www.commoditiesmansion.com/fundamental-analysis/crude-oil-daily-fundamental-analysis-for-may-23-2011/