Crude Oil prices continued to rise during the past week. After seeing an extremely volatile session, which included many ups and downs, a barrel of crude oil finally stabilized on $72.
Crude Oil's rising trend came as a result of two main reasons, the drop of the Dollar against the Euro, and unexpected negative U.S supplies data. The drop of the Dollar had its usual affect on commodities. Because commodities are valued in Dollars, when the Dollar weakens, it tends to support commodities such as Crude Oil. Another good example for this activity last week was gold. Gold rose to an all time record due to the weak Dollar. In addition, the unexpected drop of the U.S Crude Oil Inventories also contributed to the strengthening Oil. The inventories dropped by 1.0M barrels during the past week, and lower supplies created speculations for a higher demand for oil, which eventually elevated crude oil to reach over $72 a barrel.
As for the following week, traders are advised to follow the main economic publications from the U.S and the Euro-Zone, as they tend to have a large effect on Oil's value. In addition, traders should focus on the U.S Crude Oil Inventories expected on Wednesday, as this report has proven to have a large impact on Crude Oil's trading.