Commodity Daily News

Crude Oil Drops to $86.30 a Barrel

Crude oil dropped for the first time in three days during yesterday's trading session. Crude began yesterday's trading with a bullish move, and reached as high as $88.60 a barrel. However, a sharp drop took place, and a barrel of crude oil was traded for $86.30.

Crude oil fell yesterday following the U.S. dollar's appreciation versus the euro, which reduced the appeal of raw materials. The dollar gained about 200 pips against the euro yesterday following speculations that several European countries will have difficulties paying off their debts. As a result, dollar-denominated commodities, such as crude oil, have weakened.

As for today, traders are advised to follow the leading publications from the U.S., especially the Preliminary Consumer Sentiment. A higher consumer sentiment will mean that U.S. citizens feel more financially secure, and are likely to increase their demand for energy. This might correct some of crude oil's losses from yesterday.