The main reason for the drop in oil's value seems to be speculations that the U.S demand for energy has declined. The slide began on Thursday as Crude Oil Inventories surprisingly rose to 1.8M barrels, well above expectations for a 0.8M result. In addition, the negative data from the U.S. economy on Friday has increased concerns for a reduced energy demand. The combination of high supply and low demand could have only one result - crude oil reached a month low.
As for this week, traders should follow the main publications from the U.S. economy. Traders should bear in mind that currently investors interpret positive data as a good sign for energy demand and vice versa. In addition, traders should also focus on the Crude Oil Inventories report on Wednesday, as this publication usually has an immediate impact on crude oil trading.