Commodity Daily News

Crude Oil Declines Following Economic Concerns

Crude Oil failed to find support above $80 a barrel in yesterday's trading following a series of reports which helped boost the USD temporarily and put downward pressure on commodities. Crude Oil, Gold, Silver and Platinum have all been in decline since the greenback became bullish over a week ago on European economic woes. With Greece continuing to wreak havoc on the Euro-Zone's regional economy, the Dollar stands to continue gaining despite Fed Chairman Bernanke's recent testimony.

Bernanke reconfirmed that the Fed would continue to hold interest rates at record lows, leading stocks to climb higher in yesterday's trading while the USD's boost was dampened. Europe's declining growth and sovereign debt concerns mixed with a shaky US economic recovery have led many investors to assume that energy consumption may fall in the near future and this sentiment is being priced in. If the current risk-averse environment persists, Crude Oil may continue to come under selling pressure.