Commodity Daily News

Oil Prices Tumble As the USD Moves Up

Crude oil prices fell close to 400 pips in trading yesterday, as investors abandoned the ‎commodity in favor of the safe-haven dollar. While oil managed to stage a slight ‎correction in overnight trading, the trend is still very much down. Currently prices ‎stand at $80.55 a barrel. Crude oil is typically viewed as an alternative investment to ‎the US dollar. It appears for as long as the dollar is making gains, oil has the potential ‎to drop down further.‎

Today, in addition to the direction the USD takes, traders will want to pay attention ‎to the US Crude Oil Inventories figure, set to be released at 14:30 GMT. Analysts are ‎forecasting an increase in inventories this week. Should the figure come in at its ‎forecasted level of 1.5M, crude has the potential continue its bearish trend. Typically, ‎an increase in inventories signals a decrease in demand which causes oil to fall, at least ‎in the short term. ‎