Crude Oil continues to decline sharply. With the beginning of last week, Crude Oil was traded at $78 a barrel, however as the week progressed, the prices of Oil fell, and a barrel of Crude Oil is now traded for around $74.50.
Two reasons led to Crude Oil's downfall last week. The first reason is the strengthening Dollar. Crude Oil is traded in Dollars, and thus, whenever the Dollar rises, Crude Oil is likely to depreciate as a result. In addition, the American administration's plan to bar banks from trading for their own accounts had a negative impact on stocks, which also contributed to the weak Oil.
As for the week ahead, traders are advised to follow the leading publications from the U.S. and the Euro-Zone's major economies, as they are likely to impact Oil the most. In addition, traders should also follow the Crude Oil Inventories report on Wednesday, as it tends to have an immediate impact on the market.