Economic woes seem to be putting pressure on the price of Crude Oil lately. The transportation fiasco in Europe combined with depressed risk appetite has pushed safe-haven investments such as the US Dollar and Japanese Yen back into a bullish posture. The result is that commodity prices seem to be coming down off their recent highs. The price of spot crude has recently fallen from above $86 a barrel to as low as $83.20 as of this morning.
As with the forex market, should today's manufacturing and service data from the Euro-Zone come in better than expected, we could see a turnaround in the EUR, which will suppress the recent gains made by safe-haven currencies as well as help commodities pare some of their losses. Commodities traders should be on the look out for signals of a EUR recovery, which will likely lead to short term boosts in commodities such as Crude Oil.