Commodity Daily News

Crude falls Below $70 on Release of Inventories Data

Crude Oil fell by over $2.50, or 5%, to $69.01 a barrel on Wednesday. The drop came after the U.S. Energy Information Administration (EIA) released a report showing that Crude Oil Inventories are 18.3% higher than last year. Despite falling inventories in the past 4 weeks, demand continues to be weak, whilst supply remains abundant.

Despite recent gains in the equity markets and the continued weakness of the Dollar, Oil has had difficulties sustaining prices above $72. This is as demand continues to lag and inventories remain high. Today's trading session may provide some boost to Oil prices as U.S unemployment data which is set to be released today may exacerbate the Dollar's recent bearish trend.