Commodity Daily News

Oil Drops as Inventories Rise

The price of crude oil fell 1.5% to $80.20 during yesterday's trading session. This drop came after a U.S. government report showed Crude Oil inventories rose more than expected in the world's top energy consumer. The Energy Department reported that crude inventories rose by 7.3 million barrels to 351.3 million barrels last week. Analyst's expected an increase of 1.67 million barrels.
Oil prices also tracked lower stock prices, which fell after Fitch Ratings said Portugal's recovery will be slower than other countries in the euro-zone, hurting its ability to repay debt.

Looking ahead, traders are advised to watch the global stock markets and the major economic indicators which will be published from the U.S. and Euro-Zone. They will likely serve as solid indicators for the next movement in oil prices.