Commodity Daily News

Crude Oil Price May Sink after US Stockpiles Decrease

Crude Oil prices dropped may find themselves in decline this week after yesterday's oil inventories report from the United States revealed a sharp decrease in US stockpiles. The news was not unexpected considering President Barack Obama announced recently that strategic reserves would be released in order to ease rising gas costs for US consumers. The pressure this release may put on oil prices, however, could drive the price lower in the short-term.

Sporadically moving dollar values may have also helped many investors pause on their long-taking positions on physical assets. The passage of Greece's austerity budget yesterday could fuel a return to growth behavior that may counter this move, though, leading to a tug-of-war between bears and bulls on the commodity markets. Should sentiment hold steady this week, oil prices may fail to find support and begin to move back towards $90 a barrel.