Commodity Daily News

Crude Oil Remains Volatile

Crude oil saw another week of range-trading, in which the commodity remained between $73 and $77 a barrel. Crude oil began last week's session with a sharp rise towards $76.50 a barrel. However by Tuesday, the commodity dropped to $73 a barrel, only to jump back to $76.75 before the weekend.

The recent appreciation of crude oil comes as a result of the weak U.S. dollar. The decline of the dollar supports demand for commodities as an alternative investment. Furthermore, the fact that crude oil is valued in dollars means it is now more attractive to foreign buyers. It seems that as long as the dollar continues to weaken against the major currencies, crude oil prices have the potential to rise further.

Looking ahead to this week, traders are advised to follow the leading publications from the U.S. and the euro-zone, as these tend to have the largest effect on crude oil's trading. In particular, traders should follow the U.S. Crude Oil Inventories report, which is scheduled for Wednesday, as this release usually has a significant impact on the market.