Commodity Daily News

Crude Oil Stabilizes Around $70 a Barrel

Crude Oil saw a relatively peaceful trading during last week's session. Crude Oil was traded around $70.00 a barrel during most of the week, and as the new trading week begins, Crude is still trading at $70.

Crude Oil's freefall was halted during last week's trading. This was mainly due to the recovery of the Euro and the weakness of the Dollar. For the past few weeks the strengthening of the Dollar had a harsh impact on Crude Oil, and prices dropped over 1,500 pips in three weeks. Currently it seems that concerns over the European debt crisis may slow recovery, and as a result weaken demand for energy. In such a scenario, Crude Oil has potential to drop below $70 a barrel.

As for the week ahead, traders are advised to follow the updates regarding the Euro-Zone debt crisis, as these have an immediate impact on crude oil trading. Traders are also advised to follow the U.S. Crude Oil Inventories publications on Wednesday.