Spot Crude Oil's recent plunge in price has sustained itself over the past few days, with the price recently falling back below $78 a barrel. Much of this downward pressure may be caused by the recent upswing in the value of the US Dollar, but at least a few economists are less certain. Some have claimed that the recent up-turn the market experienced was lacking the fundamental data to support such a move.
If today's Crude Oil Inventories report does shows climbing reserves, it may be that the fundamental data behind oil's spike towards $84 a barrel a few weeks ago was indeed an anomaly. However, if the market can show that stocks are in decline, therefore pushing demand higher, there may be enough support to help lift oil back towards $80 a barrel in the short-term. This makes today's Crude Oil Inventories report vastly more important than it normally has been in recent weeks and traders should pay close attention to its figures.