Commodity Daily News

Crude Oil Falls Below $83.60 a Barrel

Crude oil fell for a second day and reached as low as $83.55 a barrel. Crude began yesterday's trading session around $85.80 a barrel. Yet the commodity fell over 200 pips, and a barrel of oil is currently trading near $84.00.

Crude oil prices fell yesterday on concern Europe's debt crisis may damage economic growth and as a result will decrease demand for fuel. In addition, the U.S. dollar gained to 10-week high against the euro, further weakening the dollar-dominated commodity. It currently seems that as long as the high uncertainty regarding European debts will remain, crude prices could drop lower, and might even reach $80 a barrel.

Looking ahead to today, traders are advised to follow the leading economic news from the U.S. and the euro-zone, especially regarding the European debt-crisis, as this is likely to have the largest effect on oil trading. In addition, traders should follow the U.S. Crude Oil Inventories report, which is scheduled for 15:30 GMT, as this release tends to have an instant impact on the market.