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Friday, December 5, 2008

DEC 5 FRIDAY

Fundamental Scenario

Oil fell more than 6 % to its lowest level

in 4 years in response to a weak economic data deeper decline in

global demand.The number of US workers on joblesss

rolls hit a 26 year high last month while another report

showed US factory orders fell sharply for the third month

in a row . Factory orders in October plunged in 5.1 %

the biggest drop since July 2000 and the number of US

workers on jobless benefit roll was the highest since

December 1982.

US light crude fell $ 3.12 % to settle at $ 43.67 , the lowest

since jan 5 2005.

OUTLOOK

Crude may continue to fall with weak economic data and

global financial crisis.

The oil might pose a bearish trend till the OPEC body meets

to decide the supply cuts fearing a defaltion in the price

level.



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