Last week, crude oil for October delivery ended on a positive note as WTI advanced for the fourth week running. The contract expires on 20th of September.
However, price action has failed ahead of $90 a barrel on number of times. Due to the uncertain economic outlook, traders traders are very much likely to keep a close eye on oil in the week to come. “The market continues to run into resistance at $90 and doesn‹t seem to have enough to hold above it,” commented Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The uncertain economic picture is likely to strengthen the resistance for the market up there.”
The euro debt crisis escalated again in the week prior with world major central banks rushing to coordinate collateral requirements from members of the single currency for its ailing member, Greece. Market players are concerned about the serious progress in solving the debt crisis. Prices are expected to move a lot lower, if there are no positive announcements.
