Commodity Daily News

Oil Prices Fall as Stockpiles Remain High

Crude oil prices fell dramatically to their current level of $81.55, following OPEC's announcement that it will continue to pump above its stated quota for the foreseeable future. The announcement caused Crude to fall, largely out of fears that supplies would remain high for the time being. Yesterday, prices rallied after U.S. crude inventories came in slightly lower then expected. The commodity was not able to maintain its bullish trend, and subsequently fell in evening and overnight trading.

Today, the price of crude will largely be determined by which way the Dollar moves. If USD is able to recoup some of its losses from yesterday, traders can expect oil prices to continue to fall. On the other hand, if the greenback continues to fall, crude may see an upward correction.