Commodity Daily News

Crude Oil Prices Falling back towards $65 a Barrel

Last week's spike towards $70 a barrel for the price of Crude Oil may have indeed been a fluke. As the USD strengthens on positive economic data, the value of Crude Oil has begun to decline as a result. A number of analysts have cautioned that this recent spike in price may be similar to the spike in mid-2008 which played a role in the economic crash which ensued. If oil prices are not brought under control, the impact on the global energy market could severely impede the progress of economic recovery.

Driving the price of Crude Oil this week is the value of the US Dollar. Most signals indicate that the greenback is forecast to continue its bullish trends this week which indicates that Crude Oil will likely continue its decline in the days ahead. Short of any significant breaking news which revalues the USD, it is safe to say that these trends are relatively more predictable and stable this week as compared to other weeks. We may have a healthy price target of $65 a barrel in the short-term.