Commodity Daily News

Crude Oil Closes a Volatile Week near $74.50 A Barrel

Crude oil saw an extremely volatile session during last week's trading. Crude began last week with a sharp fall to $71.50 a barrel. However by Tuesday crude saw a trend reversal that brought it up to $75.40 a barrel.

Crude oil fell during the beginning of last week due to concerns that the U.S. economy, the world's largest oil consumer, might face another slowdown. However, as the week progressed, several positive reports were published from the U.S. economy, easing investor's concerns. The reports showed that the American people have more confidence in their secure financial outlook, and that the manufacturing activity has expended at a faster pace than expected in August. In addition, the Non-Farm Payrolls report showed that the employment situation in the U.S. may finally begin to stabilize. This in turn created speculation that energy demand could rise, and as a result boosted crude oil prices.

As for the week ahead, traders are advised to follow the major publications from the U.S. and the euro-zone, as they tend to have the largest impact on crude oil trading. Traders are also advised to follow the U.S. Crude Oil Inventories figure, which is scheduled to be released on Thursday, as this report usually has an instant impact on crude oil.