Supply and Demand: Last week’s supply and demand report showed a drop in supply. This was the first decline since the week-ended December 2nd. One down week does not change the trend so traders will be paying close attention to this week’s inventory number to see if there is a shift in the fundamentals.
European Sovereign Debt Crisis: Things have calmed down enough in Europe to warrant a reasonable short-covering rally in the Euro. This weakened the Dollar making commodities priced in dollars less expensive. Crude oil prices should work higher if the short-covering continues this week. On the other-hand, the situation in Europe is still dicey, meaning there is still room for further deterioration of the Euro and a collapse in demand for higher-yielding assets.
Geopolitical Events: The standoff with Iran appears to have softened so traders may begin to discount the occurrence of any military skirmish. Crude prices could drop if speculators decide the possibility of an embargo has been squashed. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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