Commodity Daily News

Crude Oil Slips Below $71

Crude Oil slipped 40 cents to $70.70 a barrel yesterday, as the Dollar rebounded against the EUR, which in turn reduced the need for commodities as an alternative investment. Crude's fortunes were further dampened yesterday, as there was a slump in equities in both the U.S. and Europe. Additionally, commodities also suffered in yesterday's trading. One of the main reasons for this was the strong USD, which is highly important, as Crude Oil itself is priced in Dollars.


The black gold may be helped today, if we see a fall in the value of the USD. Playing on Crude Oil's downside too is the fact that demand can't keep up with prices. Moreover, it seems that the price of Oil may have been overvalued as of late, and a slight correction in the market may take place in order to determine the real value of this commodity.