After dropping rather significantly in trading late last week, crude is slightly up today as markets are still absorbing the new Chinese monetary policy. These modest gains are not forecasted to last. With China set to further tighten its banking policies, investor sentiment toward commodities in general is down. Furthermore, a higher then expected result from an American oil inventories report last week did not help the price of crude in trading. Forex traders may want to think twice before entering into any crude oil positions, at least until a clearer picture of the market place emerges.
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