|News||Crude declines for the second consecutive day|
|Analysis||Crude oil pushed lower today after yesterday’s pessimism from Europe and U.S. that pushed the commodity sharply to the downside, where it couldn’t find any factor that is strong enough to halt this downside pressure.|
Crude oil opened today’s session at $102.73 and reached a high of $103.19 and a low of $101.65, where it is currently hovering around 102.37 a barrel.
The downside pressure was strong yesterday and it seems that it would continue today, as crude fell from levels around $104.50 to trade now around $102.00, where it may fluctuates heavily today as it is the weekend and investors will prefer close their positions amid this high uncertainty.
The reasons behind this downside pressure were obvious, as for Europe, investors remained worry about Spain’s outlook and whether it will be able to get out of the current crisis or it will be the next victim for the crisis.
Also, pessimism spread among financial markets and investors after rumors said that France may face a possible downgrade for its credit rating, which would be awful for the sentiment and hit strongly the confidence in the region.
On the other hand, disappointing reports on U.S. jobs, housing and manufacturing undermined investors’ confidence as the downside pressure was strong on the market. Philadelphia Manufacturing dropped sharply, and the existing home sales fell 2.6 percent last month.
The Labor Department also said applications for unemployment benefits dipped to 386,000. When the number is above 375,000, investors take it as a sign that hiring isn't strong enough to lower the unemployment rate.
In general, the downside pressure remains strong on the commodity and may continue today, but volatility will dominate the market today since the U.S, agenda is empty and this is the end of the week where investors try to get out of the market amid high uncertainty.