Crude oil gave back earlier gains Monday and slid on a rising dollar and a manufacturing report that fell short of economists' expectations. Oil prices got to $80.60 a barrel before falling back to settle at $78.72, down around $1.90. The $80 level has been tough for oil to crack.
A stronger dollar also was a drag on oil Monday. Oil is traded in dollars on global markets and becomes more expensive for international investors who hold other currencies.
For now it seems that Crude Oil prices will continue to drop for as long as the USD continues to appreciate. Traders are strongly advised to follow the USD against its major pairs and crosses in order to try to predict today's developments.