Commodity Daily News

Crude Oil Falls From 27-Month High to $88.36 a Barrel

Crude oil fell yesterday from a 27-month high and reached as low as $88.36 a barrel. Crude opened yesterday's session with a 60 pip gain, only to see a remarkable 360 pip fall. Crude is currently trading near $89.00 a barrel.

Crude oil prices fell sharply yesterday after traders sold long contracts to secure profits. In addition, a drop in the Standard & Poor's 500 Index has led to reduced risk-appetite in the market, which has weakened oil prices as well. Another commodity that was largely influenced by it was gold, which fell by 4,000 pips yesterday to $1,375 an ounce.

Looking ahead to today, the U.S. Crude Oil Inventories figure is scheduled for 15:30 GMT. This report measures the change in the number of barrels of crude oil held in inventories by commercial firms during the past week. The currently projection is that supplies have contracted by 1.4M over the past week. Such a result might support oil prices.