Crude Oil continued to tumble during last week's trading session. A barrel of Oil was traded for $84 as last week took off, yet by Friday, crude oil saw a steep drop, and a barrel of crude oil is now traded for $77.80.
It seems that speculations claiming that supplies are more than enough to complete the enhanced demand for energy due to the global recovery. For several weeks Crude Oil saw a bullish trend as demands for energy kept increasing. However, as a barrel of Oil reached $84, it seemed that supplies have reached over the demands, and thus a decline in Oil's value was imminent. In addition, the strengthening of the Dollar against the Euro also contributed to the weakening Oil. Crude Oil is valued in Dollars, and thus when the Dollar rises, Crude Oil usually drops as a result.
As for the following week, traders are advised to follow the main publications from the U.S. and the Euro-Zone as they are likely to impact Oil's value. In addition, traders should also focus on the Crude Oil Inventories scheduled for Thursday, as this indicator tends to have an immediate impact on the market.
