NewsPreviousForecastAnalysisCrude futures dropped today for the second day in a row to trade around $83.59 per barrel this morning in light of the dollar's rise against a basket of major currencies; thus, negatively pressuring oil prices.
The Dollar Index is still trading near their highest levels for almost a year now, as this index measures the dollar's performance against a basket of foreign currencies, where the index opened today around 81.29 achieving its highest around 81.47 and lowest around 81.16 as it currently trades around 81.47.
Despite the lack of vital fundamentals, corporate earnings seem to be behind the major push witnessed in markets; however, besides the climb in stock markets we have witnessed, it was not able to support crude markets due to the dollar's current rise.
Crude opened today around $83.86 achieving its highest around 84.18 and lowest around $83.51 per barrel, where it currently trades around $83.54 lower the previous day by 0.68%.
We await for the release of vital data from the API tomorrow disclosing information regarding crude inventory levels the previous week, where expectations point to a rise in inventories which played a major role in effecting prices and causing them to drop today, reflecting negatively on demand levels by causing them to fall from the largest energy consumer in the world, leading to a plunge in prices.
On the other hand, London's Brent dropped to reach $86.5 per barrel receding by 0.38% or by $0.33 the previous day; meanwhile, the RJ/CRB commodity index followed and plunged by 0.67 to record 278.38.
Crude closed the late session yesterday around $83.87 shedding $1.17 per barrel after recording its highest around $85.61 and lowest around $83.71 per barrel.