It seems that speculations that gains have outpaced demand have weakened oil for the third day in a row. For the past few weeks, oil prices have been growing constantly on speculations that global recovery will increase demand for energy. However, the continuing uncertainty over the Greece debt crisis has supported concerns that global recovery could be damaged. In addition, the strengthening of the Dollar has also added to the falling oil prices. Crude Oil is traded in Dollars, and thus whenever the Dollar rises vs. the Euro, Crude Oil tends to drop.
Looking ahead to this week, traders should follow the major economic publications from the U.S. and the Euro-Zone, as they seem to have the largest impact on Crude Oil. In addition, traders are advised to follow the U.S. Crude Oil Inventories report which is expected on Wednesday, as this report tends to have an immediate impact on the market.