Crude oil update: Market waits for the release of GDP quarterly figures and Fed’s meeting

Crude oil fell in Asian trade today as the investors behaved cautiously ahead of Fed’s meeting next week and release of US quarterly GDP figures today. We believe that the release of quarterly GDP figures by US Commerce Department today will determine the oil demand outlook but these figures will not leave a very aggressive impact on oil prices today as we believe that the investors will still continue a cautious approach today. At 1139 GMT, light sweet crude oil for December delivery was trading at $81.68/barrel.

USD was seen to be making some recovery again. At 1144 GMT, EUR-USD exchange rate was $1.3852/Euro. At 0439 GMT, gold for December delivery was trading at $1,341.90 per troy ounce.

As the trading starts in half an hour, we believe it will be another day in which investors will be showing cautious behavior and we will be seeing some fluctuations in the USD during the day. Oil prices might see bearish or bullish trend after the release of GDP figures but that trend will not last long as the market still waits for the Fed’s meeting next week and its decision over the QE2.