Commodity Daily News

Crude Oil Price Finds Weak Support at $92 a Barrel

Crude Oil prices dropped sharply towards $92 a barrel Monday morning as sentiment appeared to favor a downturn in global industry and manufacturing. The sudden halt to this downward movement came as a result of several forces Tuesday morning. Primarily leading the rebound in oil prices was a sense that risk aversion was on the rise and a favorable vote for an austerity budget in Greece could whip traders back into a buying session on industrial growth corollaries like oil.

Faltering dollar values may have also helped many investors pause on their short-taking positions on physical assets. With US Crude Oil Inventories getting released today, one week after the Obama administration announced a plan to release massive amounts of its strategic reserves to combat rising prices, traders appear to be anticipating a technical sell-off immediately after the inventories data; driving the price higher to capture the swing. Should sentiment hold steady this week, oil prices may fail to find support and begin to move back towards $90 a barrel.