Commodity Daily News

Has the Crude Oil Reached Its Peak?

Ever since reaching $73 a barrel, crude oil fell for a second day as it seems that the dollar bearish trend has limited its impact over crude oil. In addition, recent surveys in the U.S teach that unlike previous predictions and forecasts, the demand for gasoline in the U.S won't increase this summer. This only adds to the fact that leaving aside the weak dollar, there was no fundamental basis for the inflating oil prices.

Currently, speculations are made whether OPEC will decide to increase oil production in their next meeting. However with recent data showing that demand for oil is less than expected, it seems unlikely that OPEC will make such a decision.

As for the week ahead, traders are advised to follow the dollar's movements, as it was proven that crude oil prices are largely affected by USD fluctuations. In addition, traders should pay attention to the U.S Crude Oil Inventories report scheduled for Wednesday, as it tends to have a large impact on Crude Oil's prices, especially for the short-term.