Commodity Daily News

Will the Price of Oil Continue to Drop During the Winter Season?

Unable to break through the price barrier of 77.80, the price of Light Sweet Crude continues to test its lower limits. How long it will test this price before breaking through, or climbing back to higher levels, is yet unknown. As always with the price of Oil, the USD and the American economy play an important role. With fears of a recession looming over investors countered by hopes of the recent financial bailout package, the market seems confused about which direction to take. One certainty is that recent market anxiety has lowered the demand for Crude Oil, which is showing its effects by the steady drop in price over the last two weeks regardless of supply.

As the winter season approaches the northern hemisphere, the price of Crude Oil is typically forecasted to climb as the large industrialized nations of Europe and North America start buying up heating oil for their populations. With the recent slump in demand, however, the price of Crude Oil may indeed continue to fall despite winter demand. For today's trading, investors should continue to keep an eye on the American economic indicators as they will be the market movers throughout the day.