NewsCrude drops hovering near $78 on weak global economic concerns as the US dollar plungesPreviousForecastAnalysisCrude prices dropped today to trade near $78 per barrel as stocks also managed to slide and thereby reflecting poor sentiment in markets, while the US dollar managed to record its steepest drop in three months as we await the release of growth data today from the second largest global energy consumer.

Crude today traded above $78 per barrel recording its highest around $78.37 and lowest around $77.80, while it currently is trading around $77.95 per barrel.

The US dollars drop was due to data released from the region showing that the economy is moving at a weaker than expected pace, thus reflecting a drop in consumer confidence the lowest in the three months; the dollar index continued falling today to open at 81.59 recording its highest around 81.71 and lowest around 81.47, while currently trading around 81.57. On the other hand, Europe has been releasing optimistic data this week and the previous week and thereby reflecting better than expected data and notable improvement in the economy.

Crude yesterday traded above $77 per barrel recording its highest around $78.87 and lowest around $76.42 per barrel, closing around $78.25 per barrel. It managed to gain $1.37 by 3.3% due to disappointing US consumer confidence and weak dollar, thereby spreading a pessimistic wave over markets.

Meanwhile, the release of Japanese economic data today showed a fall in its industrial production and consumer prices, while the jobless rate rose to reflect a pessimistic confidence in markets.

On our economic agenda today, we await for the release of the US second quarter GDP growth figures; from April to June’s quarter the GDP is expected to expand 2.5%, down from 2.7% in the first quarter. Therefore, negatively reflecting on crude and increasing fears regarding global demand levels on oil rising.

As for NYMEX as of 03:00 EST; motor gasoline rose by $209.740 per gallon to record $1.65; heating is trading around $203.450 per gallon losing $0.13; whereas natural gasoline rose by $0.60 per 1000 cubic feet to record $4.856. In London, Brent futures fell by $0.10 to record $77.510.