Commodity Daily News

Crude Oil Drops Below $81 a Barrel

Crude oil fell to its lowest level in two weeks on Friday, reaching as low as $80.75 a barrel. Crude began last week's trading around $82.50 a barrel, and was able to go as high as $84.10.

Crude oil fell close to the weekend as a result of the strengthening dollar, which reduced the appeal of commodities as an alternative investment. The dollar gains came following better-than-expected U.S. Retails Sales results in September. It appears that if the dollar will continue to strengthen against the major currencies, especially the euro, crude oil may drop further. At the moment, it has the potential to drop below $80 a barrel before the end of the week.

Looking ahead to this week, traders are advised to follow the major news releases from the U.S. and the euro-zone, as these tend to have the biggest impact on crude oil trading. In addition, traders should pay particular attention to the U.S. Crude Oil Inventories report, scheduled for Wednesday, as this release usually has an instant impact on the market.