Investor fears regarding the latest European financial news translated into a sharp drop in value for crude oil. Crude, which just yesterday was trading around the $70.75 price level, has since dropped to around $69.50. As the U.S Dollar has increased over the last 24 hours, oil prices have fallen. In addition, most analysts are forecasting an increase in U.S crude supplies this week.
While the actual figure will not be released until tomorrow, speculation of a decrease in demand for the world's largest energy consumer has further weighed down the commodity.
For today, should the Euro continue to drop, traders may want to operate under the assumption that crude prices may continue to fall as well. At the same time, any unexpected bad news to come out of the U.S could lead to a cheaper price for oil and thus higher demand.