Commodity Daily News

Crude Oil Drops as Global Recession Deepens

Yesterday the price of Crude Oil dropped as investors digested more poor economic data and looked to the new U.S. economic stimulus package for supporting Crude. The U.S. Energy Information Administration released U.S. Crude Oil inventories data showing inventories were more than 6 times the level forecasted by analysts. Later in the day, Crude showed signs of a rally as traders found a bright spot in the quick passage of President Obama's economic plans quick passage in the U.S. House of Representatives.


Crude Oil finished the day down at $43.01, down 57 Cents. The price of Crude Oil is likely to decline in the coming days. This is due to the likelihood of demand continuing to weaken and the supplies of Crude Oil likely to grow in the short-medium term, as was seen in the inventories data. This trend is expected to continue for at least the next six months. Demand will only grow, when the leading economies recover from the global recession. Look for Crude to finish the week down further, perhaps at the $41.00 mark.