Categorized | ForexYard

Fears of Reduced Fuel Demand Drops Oil Prices

Posted on 16 June 2011 by ForexYard

Crude Oil prices dropped sharply towards $94 a barrel Wednesday as sentiment appeared to favor a downturn in global industry alongside a slump in demand for the black gold. Data releases out of Britain and the US yesterday were driving many investors back into safe haven assets as most reports suggested murky growth in global industrial output and consumer spending.

As investors sought safety, the value of crude oil, which has been seen plummeting all week, fell to a monthly low of $94 a barrel. A sudden jump in dollar values due to yesterday’s risk averse environment has helped many investors ram up their short-taking positions on physical assets. Crude Oil Should sentiment hold steady this week, oil prices may continue to fail to find weak support near its current price.

This analysis is republished with permission from ForexYard. Their daily analysis can also be found at Daily Commodity News.

Comments are closed.

Free Ebook!

Dowlnoad this FREE Ebook to Discover
7 Expert Secrets to Crude Oil Futures Trading
Enter Your Name & Email For Instant Access: