Commodity Daily News

Crude Oil Drops Below $72.00 a Barrel

Crude oil dropped below $72.00 a barrel for the first time in 4 weeks by Friday. Crude oil saw a sharp drop during last week's trading session, falling from $78 a barrel to $71.60 by the weekend.

Crude oil's downfall came as a result of the disappointing data from the U.S. economy. The downfall began as reports showed that Consumer Confidence in the U.S. tumbled in June. Later, negative data was released regarding the current state of the housing and employment sector. Considering the U.S. is the largest consumer of oil in the world, the negative data has created speculation about a drop in demand.

Looking ahead to this week, traders are advised to follow the major publications from the U.S. and the euro-zone, as these tend to have a large affect on oil prices. In addition, traders should follow the U.S. Crude Oil Inventories report on Thursday, as its result tends to have an immediate impact on the market.