Commodity Daily News

Crude Falls below $60, Heading For Further Loss

Crude Oil prices fell below $60 a barrel Friday, marking their biggest weekly loss in 6 months as an International Energy Agency (IEA) report reaffirmed concerns about weak demand. Also weighing on Oil prices Friday, data showed U.S. consumer sentiment fell sharply in early July, adding to the recession worries that also dragged U.S. stocks lower.

Oil has tumbled 10.3% this week, its biggest weekly loss. This sharp decline came after the Commodities Futures Trading Commission, the U.S. futures market regulator, said earlier this week that it was considering applying limits on speculation in energy futures.

The market has been too optimistic about a global economic recovery later this year, but that now looks unlikely to happen, so Crude Oil prices are declining. According to analysts Crude prices could see more corrections in the short term as external factors which have helped oil's recent rally, including a weak U.S. dollar and rising equities, are set to reverse course.