Commodity Daily News

Price of Oil Comes Down from Suspicious Price Jump

How can the recent spike in the price of Crude Oil be explained? An interesting perspective by analysts has it that a maneuver taken by powerful traders pushed the price to jump during the last hour of trading for October delivery of Light Sweet Crude in an attempt to grab a corner in the market. Investigations have been initiated to look into these allegations. This outlook can be justified by the fact that only about 41,000 trades changed hands, as compared to the usual 200,000+ that change hands on a typical trading day, yet still the market made an historic jump in price, which automatically raised eyebrows among investors.

Dropping from the $110 mark reached Monday and leveling-off near $106 during today's early trading sessions; the price of Crude Oil appears to be coming down from its recent flight. Adding to this downturn is the rally seen by the USD which has investors more confident in the strength of the currency market. For today's trading, the movement of the USD should remain a strong indicator for the price of Crude Oil, especially since Crude Oil Inventories are to be released today from the U.S., and the economic recovery program is still under deliberation, potentially causing higher volatility in the market.