Friday, 11 Sep 2009

Crude Oil Drops Below $69 a Barrel

Before the trading week closes, crude oil saw a sharp decline, sliding from $72.80 to $68.80 a barrel. Crude oil failed to breach through the $72.90 level, which marked this week high, and the bullish trend rapidly reversed.

This week's trading session was largely impacted by the weak Dollar. The greenback saw its longest losing streak since March, as a better-than-expected result of the Preliminary University of Michigan (UoM) Consumer Sentiment report encouraged investors to sell the Dollar and buy higher yielding assets overseas. The Preliminary UoM Consumer Sentiment rose to 70.2 this month from 65.7 in August beating expectations for a 67.2 end result.

As for the following week, many impacting data is expected from the major economies. Traders are advised to focus their attention to the German Economic Sentiment, the U.S. Retail Sales indices, the U.S. Consumer Price Index (CPI) and the U.S. Unemployment Claims. It seems that a batch of positive data from the American economy might have the potential to reverse the current bearish trend.