Crude Oil dropped once again during last week's trading session. Crude Oil dropped about 400 pips from $74 a barrel to less than $70 a barrel as the trading week opened Sunday night.
Crude Oil continued to drop during last week's trading on concerns that the Euro-Zone's debt crisis will lead to a decline in demand for energy. In addition, the European woes are leading to high-uncertainty in the market that drives investors to look for safer assets. Another reason for the slide of Crude Oil is the strong Dollar. Crude oil is traded in Dollars, and thus whenever the Dollar rally, Crude Oil tends to drop in response. It now seems that as long that the European debt crisis will continue to have a large impact on the market, Crude Oil has potential to drop further.
As for this week, traders are advised to follow the leading publications from the Euro-Zone and the U.S. as this seems to have the largest impact on Crude Oil. In addition, traders should follow the U.S. Crude Oil Inventories report on Wednesday as this publication tends to have an instant impact on the market.