Commodity Daily News

Crude Oil Slides on Rising Dollar

Oil fell significantly on Monday, as the U.S. Dollar made significant gains. Crude dropped nearly a Dollar to close at $78.81. This was originally sparked by fears in the U.S. over the government cutting tax credits for homebuyers. This sent fears through the equities market. Thus the obvious loser of all of this was Crude Oil, as the USD gained as global investors seeked a safe-haven currency in Monday's trading.

Crude's losses are notable, as the black gold had been trading as high as $81.58 on Monday. The other factor that also played on the mind of traders yesterday was that demand of U.S. consumers may slide in the coming weeks as the pace of the U.S. economic recovery slows, and U.S. unemployment continues to rise. If the USD continues to rise today, then we may see Crude Oil continue to decline.