Commodity Daily News

Crude Oil Falls 1%

Crude Oil prices fell more than 1% on Monday to around $104.90 a barrel, reversing steep early gains as traders assessed efforts to stem the conflict in Libya and took profits in Brent's unprecedented premium to U.S. futures.

Trading was volatile, with investors first reacting to attacks by Libyan ruler Muammar Gaddafi's supporters to retake an oil hub from rebels. Then selling kicked in on a report that Gaddafi was seeking a deal to secure a safe exit.

As for today, traders should first and foremost follow the developments in the Middle East, as this issue will continue to impact oil prices in the near future. Traders are also advised to follow the Canadian Housing Starts report, which is scheduled for today at 13:15 GMT, as this report tends to have a direct impact on the market and a correlation with oil prices.