Commodity Daily News

Oil Drops Slightly in Overnight Session

Crude oil began to come off its recent highs throughout the day yesterday and into the overnight session. Analysts attribute the drop to decreased demand in the US due to high prices. Currently, crude oil is trading at $104.51 a barrel, down from $105.75 yesterday afternoon.

Today, prices could drop further following the release of the US Crude Oil Inventories figure at 15:30 GMT. Analysts are predicting a surplus in US stockpiles which if true, is likely to be seen as another sign of reduced demand in the world's largest oil consuming nation.

That being said, traders should pay attention to any developments in Libya. The fighting in that country continues to have a dramatic effect on the price of oil. Until a degree of calm is brought to the region, the price of oil is unlikely to drop significantly.