Commodity Daily News

Fears of Reduced Fuel Demand Drops Oil Prices

Crude Oil prices dropped sharply towards $93.60 a barrel Tuesday as sentiment appeared to favor a downturn in global industry alongside a slump in demand for the black gold. Data releases out of Britain and China yesterday were driving many investors back into safe haven assets as most reports suggested a surprise downtick in growth among global industrial output and consumer spending; with dismal consumer confidence reading these past few days from the major economies of the West.

As investors sought safety, the value of crude oil, which has been seen plummeting all week, fell to a monthly low of $93.50 a barrel. A sudden jump in dollar values due to this week's risk averse environment has helped many investors ram up their short-taking positions on physical assets. Should Crude Oil sentiment hold steady this week, oil prices may continue to fail to find support near current prices.