Commodity Daily News

Oil Prices Sent Lower as Investors Seek Safety

Oil prices slumped below $92 a barrel yesterday morning following a report out of the United States on Wednesday which revealed a decline in its oil stockpile data. These US oil stockpile reports had shown significant growth for a few weeks before finally experiencing a downturn. The sudden halt of this inventory growth had a sharp effect on the value of Crude Oil as its price fell from a recent high near $103 a barrel to a current low just under $92.

The value of the US dollar versus the euro in recent trading has pushed towards a three-week high near 1.4160, which originally hurt the value of oil. With today's steady sideways movement, traders appear likely to see oil faltering somewhat before this week's market close. Whether oil traders decide to lift oil prices from a buy-in on physical assets, or whether they decide to pull away from the black gold out of a perceived risk averse environment, is a point traders will bear witness to next week.