With the bright chances of improved global recovery in the 1st quarter of 2011, crude oil is expected to trade in an $80-$100 per barrel range in Q1 2011, according to an outlook presented by FOREX.com, a division of GAIN Capital, in its 1Q 2011 Markets Outlook report.
In its outlook for the markets during the first quarter it said that improved demand and tightening supply likely to push crude oil prices higher.
“Improved US growth prospects could spark gains for risk assets, like stocks and commodities, while the debt crisis in Europe may get worse before it gets better,” it said.
“The passage of the US tax cut extension and additional stimulus measures paves the way for an improved US outlook, which is a positive for the overall global recovery’s prospects. Further, we believe the potential for a “double dip” recession is now over,” said Brian Dolan, chief currency strategist, FOREX.com. “In the Eurozone, problems remain as we head into 2011. So far, the credit crisis in the peripheral nations has not spread to a currency crisis, but this could change if Spain were to require a bailout.”
“Euro remains vulnerable to on-going impasse between ECB and national governments over debt crisis resolution mechanism; China’s growth to slow only marginally, with inflation likely to remain elevated; Australia continues to chug along and the Australian dollar continues to outperform despite the Reserve Bank of Australia staying on hold and the New Zealand dollar underperforms as the Reserve Bank of New Zealand takes a more dovish stance,” according to the forecast.
“Forex and spot metals trading involve significant risk of loss and are not suitable for all investors.”