Commodity Daily News

Crude Oil Drops below $96 amid Risk Aversion

The price of crude oil continued to drop yesterday, as the Greek debt-crisis continued to fuel risk aversion in the markets. The commodity eventually dropped below the $96 a barrel level before staging a slight upward correction late in the European session. Analysts are warning that, if the current trend continues, the price of oil could drop to around the $94 a barrel level before the end of the week. At the same time, there are a number of factors at play that could cause the commodity to unexpectedly spike.

Traders will want to watch out for any escalation in the current situation in the Middle East. Specifically, any increase in tensions between the US and Iran over Iran's nuclear program will likely cause the price of oil to spike. Additionally, any positive euro-zone developments may lead to an increase in risk taking which could boost the value of oil.