Commodity Daily News

Oil Prices Drop from Negative Economic Outlook

The price of Oil continues to fall, shedding over $5 in trading yesterday to close at $63.24. Oil suffered a sharp drop in price during the month of October and has halved its price from its record peak in July.

Oil has been steadily dropping due to a global economic slowdown. Any hint of negative economic data has sent the price lower. Yesterday saw the release of worse than expected numbers for the U.S. manufacturing industry. This added to the negative pressures on Crude Oil prices, sending it lower late in the day.

The Crude market has also been waiting for signals from Saudi Arabia that it has cut Crude Oil production in line with the recommended cuts from the Organization of Petroleum Exporting Countries (OPEC). OPEC would like to see Crude Oil hold between the ranges of $70-$90 a barrel, but a negative outlook on the global economy may put pressure for Crude to perhaps trade in a range closer to the $40-$60.