Commodity Daily News

Crude Oil Experienced Another Day of Steady Depreciation.

Crude Oil prices experienced another day of steady depreciation as the oft-traded commodity dropped below $120 for the first time since May. Oil prices traded at just above $118 per barrel as it traded down for the third straight day, continuing a nearly 1 month long drop in overall energy prices. Much of the bearish movement in Crude Oil can be attributed to fears in a drop of fuel consumption due to poor economic outlook in the major economies of the world. With economic growth slowing in the US and Europe, and another month of falling service industry numbers, Crude Oil dropped yesterday by over $2 a barrel. After major oil-production locations along the Texan coast and the Gulf of Mexico were missed by tropical storm Edouard yesterday, the price of Light Sweet Crude continued to drop.

Looking ahead to today, one of the more influential pieces of economic data will be Crude Oil Inventories for the United States of America. The inventories index has become more and more relevant over the last few months as the movement of Oil prices has become a major market mover. Expectations show a 0.1M rise in Crude inventories, up from last month's drop of 0.1M. Expect market wide volatility in and around the 2:35 GMT release of inventories as Oil continues to show signs of depreciation.