|Analysis||Crude oil slipped for the fourth day ahead of the thanks given holiday in the U.S. and important U.S. data due later on today. Prices are continuing their fall due to concerns with regard economic recovery and as the U.S. dollar rebounded against major, reducing the appeal of the commodity as a hedge against inflation.|
Oil declined in the previous day despite the dollar's slide and the release of better-than-expected U.S. existing home sales which boosted stocks, where Dow Jones jumped to its highest since October 2008. The contract on Monday edged up $0.09 closing at $77.56, while recording a high of $79.92 per barrel and a low of $76.88 per barrel.
Today, the green currency strengthened against major currencies except the yen as indicated by the dollar index which soared to 75.37 compared with yesterday's closing at 75.12. The dollar's rebound dimmed demand on oil as an inflation hedge.
Also, Asian stocks dropped where Nikkei slumped to the lowest level in 4 months impacted by shares of banks and exporting sector. However, eyes today will be on the revised U.S. GDP, consumer confidence, and FOMC minutes. In addition, the American Petroleum Institute will release its weekly report to show change in demand on U.S. inventories in the prior week.
Currently, oil is traded at 77.45, recording a high 77.77 and a low of 76.90, declining slightly from yesterday's closing. Amman expects crude prices to range between $70 and $80 a barrel in 2010.