Commodity Daily News

Oil Above $91 Once Again

Crude oil dropped some 70 pips in overnight trading before staging a correction. Currently, the commodity is back above $91 a barrel, although analysts are torn about its current direction. On the one hand, the price of oil may drop because of China's decision to raise a key interest rate over the weekend. China has overtaken the US as the world's biggest energy consumer, and their interest rate decision was widely seen as a way to slow down economic growth.

On the other hand, this week's US Crude Oil Inventories are expected to fall, which typically leads to a higher demand for oil while increasing prices. Traders will want to pay attention to oil. Once a clearer trend presents itself, there will likely be an opportunity to enter into positions at a great price.