Volatile trading can be expected and oil prices could test USD65 this week

Report from Weekly Communities Market View
Last week WTI crude oil prices were buffeted around by contradicting economic releases. After signs of improvement in U.S. industrial production and European GDP, weak U.S. consumer confidence figures released on Friday reminded market participants that demand is still frail and pushed prices below USD68.

The recession appears to be ending in many parts of the world, which should eventually motivate a rebound in energy demand. The International Energy Agency increased its forecast for 2009 global oil demand by 190 kb/d to 83.94 mb/d due to the unexpected strength in Asia.

However, oil demand is still forecast to fall 2.6% this year. Prices continue to take cues from changes in economic fundamentals rather than the still-bearish supply-demand picture. As a result, volatile trading can be expected and oil prices could test USD65 this week.

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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