Commodity Daily News

Slow Growth and European Fiscal Concerns Weigh on Oil

Spot crude oil prices traded slightly higher yesterday, despite weakness in global equities and poor economic indicators.

The price of spot crude oil finished the day yesterday at $71.72, up from an opening day price of $71.15. Yesterday, Saudi Arabia reaffirmed its preference to a price range for spot crude oil between the prices of $70 - $80 a barrel.

Negative sentiment has continued in trading of spot crude oil as the commodity sold off sharply on Friday following the less than expected U.S. Non-Farm Payrolls data. The downtrend continued into yesterday's Asian trading session when the commodity reached a daily low of $69.51.

We may expect further bearishness from the commodity as sluggish economic growth and European fiscal concerns weigh on the price of oil. A breach below the $69.50 support level could drag the price of spot crude oil lower to the support of $67.00.