Commodity Daily News

Crude Oil Tumbles amid Risk Aversion

Euro-zone debt fears combined with reduced Middle East tensions caused the price of crude oil to slip during trading yesterday. Investors largely reverted back to safe-haven currencies like the USD throughout the day which led to a drop in commodities including oil. Oil prices dropped well over $1 during European trading.

Today, traders will want pay attention to several US indicators, particularly the Crude Oil Inventories number. A significant increase in US crude stockpiles is forecasted, which if true may bring the commodity further down for the rest of the week. Traders will also want to note the FOMC Statement at 17:30 GMT. If the Fed decides to maintain its current policy of near zero interest rates, oil may drop further if risk aversion takes place.