Commodity Daily News

Many Factors Combine to Deflate Crude Oil Prices

Crude Oil continued to drop yesterday as the price of a barrel of oil decreased to about $66.20, dropping to its lowest level in two years!

At least three influences combined to damage Crude Oil prices recently. The first is the strengthening USD, and the well known equation hasn't change: the stronger the Dollar, the lower the price of Crude Oil. The second reason is the ongoing concern from global slowdown that had a devastating impact on Crude Oil demand. The third reason is yesterday's Crude Oil Inventories indicator which delivered better-than-expected results, reflecting higher supply and by that extending Crude Oil's bearish trend.

For now it seems that Crude Oil prices will continue to drop for as long as the USD continues to appreciate. Traders are strongly advised to follow the USD against its major pairs and crosses in order to try to predict today's developments.