Fears of a double dip recession are causing spot crude oil prices to decline as the price of the commodity has fallen in the early morning hours of the Japanese trading session.
Spot crud oil prices are currently trading at $71.50, the lowest price the commodity has seen since the first week of June.
Traders are concerned that another downturn in the U.S. economy could slow future demand for crude oil. As such, spot crude oil prices have fallen almost 10% over the past 7 trading days. This is despite a slumping dollar which is down 3% versus the euro. Typically the price of spot crude oil rises when the dollar weakens as this allows holders of foreign currencies to buy crude oil cheaper.
Positive economic data may help to lift the price of spot crude oil. Today's release of the U.S. ISM Non-Manufacturing PMI at 14:00 GMT could support a lift in prices to the resistance level of 72.50.