Crude Oil saw a sharp uptrend during last week's session, and a barrel of crude oil was traded for over $71 a barrel. However, the bullish trend was halted and for the past few days a barrel of oil has been trading for under $70.
The main reason for the halt in the uptrend seems to be concerns that the U.S economy will take longer to recover. That is of course due to the poor employment data from last week. The logic behind it is that the U.S is the biggest energy-consuming nation in the world, and thus any deterioration in its condition might signal a decrease in fuel demand. In addition, another reason for lowering oil prices was the rising supplies from Russia.
Russia increased output by 1.7% in September, and the combination of dropping demand and rising supply has prevented Crude Oil from reaching above $70 a barrel again.
Looking ahead to this week, the high volatility in Crude Oil's trading is likely to continue. Traders are advised to follow the leading publications from the U.S. and the Euro-Zone as they tend to have a great impact on oil prices. In addition, traders should also pay attention to the Crude Oil Inventories report on Wednesday. This weekly report usually leads to sharp change of prices for the black gold.