Crude Oil prices plummeted 3.7% yesterday, as U.S. data presented a lower demand and an increase in imports which raised the level of Crude Oil Inventories. A stronger Dollar also helped to accelerate the price decline in Crude Oil. Crude Oil finished the day down at $76.32 from an opening price of $79.29. This was as Crude Oil stocks rose by 1.8million barrels over the previous week. The increase was over 1 million barrels higher than market forecasts.
A stronger Dollar also helped to reduce the price of Crude. The typical relationship between Crude Oil and the Dollar has Crude Oil falling when the Dollar rises. The range trading between the levels of $78-$80 we have seen this past week was broken yesterday. Perhaps today the price may rebound back to the lower level of this range near $78.25 to close out this week's trading.