Commodity Daily News

Crude Oil Prices Following Equity Markets

Crude Oil prices continue to slide on a permanent basis, and a barrel of Crude Oil was traded for $33.50 yesterday.

Forecasts are assuming that world oil consumption will drop 1.7% to 84.3 million barrels a day this year, and particularly there is a serious concern that oil demand will drop sharply in the U.S. it seems that as long as the U.S economy continues to deteriorate, oil prices will continue to respond in lowering prices. if oil prices were considered to be attached to the USD in the past, it appears that today oil prices are more attached to the Dow Jones than to anything else, and as long as equity markets in the U.S will deliver bearish signs, a barrel of Crude Oil might be values under $30.

As for today, traders are advised to continue following equity markets in the U.S as they seem to be the best tool in order to predict future developments.