23 Jun '11, 12pm
Crude Oil May Bounce on EU Summit, Gold Chart Calls for Losses
Looking ahead, the absence of energy-specific economic data for the remainder of the week ought to see the link between crude and the S&P 500 reestablished, which argues for a bearish bias at the moment as futures contracts tracking the US benchmark stock index sink to the tune of 0.5 percent ahead of the opening bell in New York. Broadly speaking, this makes sense. Chinese and Euro Zone PMI readings showed continued slowdown in both regions while yesterday’s FOMC announcement painted a stark picture of lackluster performance coupled with the absence of further stimulus. Plainly put, all three of the world’s top economic growth engines now look worse than before, pointing to a weak second half of 2011 for oil demand.