Crude oil dropped close to 5% of its value today. Crude oil dropped from $77 a barrel to $72.40. This has marked the biggest single-day drop in more than six months.
Crude oil dropped yesterday, as debts concerns in Europe along with the unexpected increase of U.S. weekly employment claims may hurt the long-term demand for energy. Crude oil prices rose during most of the week on optimism regarding the global economic recovery. However, recent notifications that several European countries suffer from excessive deficits have ended the optimism. In addition, the Dollar's bullish trend also weakened oil. Crude oil is valued in Dollars, and when the Dollar sees a sharp rise, crude oil tends to drop as a result.
Looking ahead to today, traders are advised to follow closely the major publications from the U.S. economy as they are likely to impact oil the most. Today's most significant data will be the U.S. Non-Farm Employment Change, and this publication is likely to have an immediate affect on crude oil.