Commodity Daily News

Market Anxiety Causes Crude Oil Price to Fluctuate Sharply

Predicting the movement for the price of Oil these past days has proven a difficult task for market analysts. Just when it was believed that traders would see a price range of $80-90, the price jumps back up to an unbearable level. These suspicious price jumps are being investigated, but that does not mean they have ceased. Yesterday, traders saw a recurrence of Monday's upswing as Oil prices peaked just over $109 before falling back to $105 by the end of the trading session. It appears as if the price of Light Sweet Crude floats in expectation of economic indicators and then jumps accordingly.

As with this past week, the direction for the price of Crude Oil will be driven by the perceived strength of the USD. With U.S. Crude Oil Inventories dropping 1.5M in yesterday's release, beating the forecast of a 2.0M decrease, Crude Oil leveled off later in the session and now sits near the $106 mark. However, during today's early sessions, the price of Oil appeared to be floating in the same manner as it had done during yesterday's early trading session. This is an indicator that its price is once again waiting for some sign of movement by the USD before choosing a clear direction. Smart traders could play off this anticipation and earn big profits by following closely those indicators which affect the USD as they have a strong inverse relationship with the price of Crude Oil.