The price of spot crude oil is currently testing a significant support level at $72.50 a barrel. This is a price which the market has not seen since 16 December 2009. Declining inventories in major consumer countries like the United States has led some to conclude that demand for the black gold is continuing to fall, despite few clear signals that such a sentiment exists. One thing is certain is that if Crude Oil can break through its current price barrier then it may continue to drop to as low as $68 a barrel in the short- to medium-term.
This week's data will be highly impacting on the value of the US Dollar, which always carries with it a dramatic change in the value of commodities like Crude Oil. Since many are expecting a downward correction in the USD later today, there is a chance that spot crude oil will fail to breach the barrier in today's trading. However, should today's reports prove positive for the USD, there is a chance that this barrier will indeed be breached and forex traders will have an opportunity to enter the downtrend and ride it out to its next target around $68 a barrel.