CRUDE OIL PRICE OUTLOOK- Elections in Greece and France

The crucial elections in France and Greece finally took place and the markets’ reaction is seen as bearish. Whether this trend will continue or not depends on perhaps the sole bullish feature; whether EU will implement the ban on Iranian oil or not. Investors are waiting this week for China to generate data on its economy so that they can see the latest economic conditions clearly. On Thursday, Fed Chairman Ben Bernanke’s speech is also anticipated.

Chikako Mogi of Reuters highlights that defeat of the ruling parties in France and Greece led to risk aversion in the market which caused the prices of oil to fall further. There is a growing concern that the consensus EU has over sovereign debt crisis is rapidly eroding due to outset of these governments and points doubt at the current austerity measures taken to handle it. Elections in Greece had a much more profound impact on the market than that of France which was relatively expected. The damaging effects of dropping US data still holds grip on the market.