Commodity Daily News

Crude Oil Falls to 21-Month Low

Crude Oil continues its decline, settling at $55.24, for a loss of $4 on the day. This puts Crude Oil at a 21-month low. Oil is well below the psychological level of $60. This support line has been broken and sustained.

The quick spike in demand from the Chinese stimulus plan has quickly faded throughout the week as Oil continues to head lower. Demand is weakening amid a period of global economic contraction. The $50 mark for Crude looks to be in sight. Traders that were once bullish on Oil are now unwinding their positions and investing them in Dollars.

There is almost zero evidence to support a reversal of this bearish trend. Today should be no different as the U.S. Crude Oil Inventories report will be released. Traders are also speculating that the International Energy Agency will lower its forecast for global Oil consumption, due to be released next month.