October crude oil traded lower during the initial morning hours, pressured by disappointing Eurozone sentiment readings, weak global equity markets and a rally in the US Dollar. Brent crude oil prices also turned lower as sentiment began to turn south, putting its 5-day winning streak in jeopardy. While yesterday's US Consumer Spending data saw its largest monthly advance in 5 months, some traders suggested that it probably takes a number of better-than-expected data points to shake off recessionary fears. It also seems that the crude oil market faces the potential for a boost in supply, with a quicker than expected return of Libyan oil production. Libya's state run oil company indicated that they would restart production at a couple of oil fields in the next month.
Join the Discussion