Crude oil began Monday's trading session with a sharp bullish trend and reached as high as $86.49 a barrel. However, a swift reversal then took place, and the commodity fell almost 200 pips, reaching as low as $84.56 a barrel
Crude began yesterday's trading with a bullish trend after unrest spread from Egypt to other Middle Eastern nations. This has renewed concerns that crude supplies from the region could be disrupted, with the biggest concerns revolving around protests in Iran, the world's fourth-largest crude oil exporter.
Nevertheless, by midday crude prices saw a sharp drop as oil traders weighed growing U.S. oil supplies against unrest in the Middle East. U.S. crude stockpiles are expected to increase by 1.2M barrels and gasoline stocks are expected to increase by 800,000. It is clear that traders are currently more influenced by the rising supplies in the U.S. than the possible disruption in oil supplies from the Middle East.
As for today, traders should follow all updates regarding the unrest in the Middle East, especially in Iran, as this may keep impacting the oil market. In addition, traders are advised to follow the leading economic releases from the U.S. and the euro-zone, as these are also likely to affect crude prices today.