Crude prices started plunging yesterday from records highs as investors started locking in on profits. The release of economic data showed that growth for the U.S economy will continue to slow especially after consumer confidence dropped to its lowest level since 16 years. As the U.S is known to be the world's largest crude consumer, they will have dampened demand for crude due to the slowdown.
The IMF added remarks to the market that prices of crude can not go much higher without causing recession which in role pressured prices to start falling. Yesterday the contract shed $3.34 as it closed at $128.85 while recording a high of $133.65 per barrel and a low of $128.18 per barrel.
Today, black gold prices are continuing their slip as there are anticipations that the surging gasoline prices further crippled demand by the US. Despite the tension in Nigeria which was one of the supports for spiking prices lately, now the focus is on the economic data the U.S is releasing those days. The markets today opened at $128.30 while recording a high of $128.98 per barrel and a low of $128.10 per barrel so far.
The EIA will not be coming out today due to Memorial Day holiday in the US on Monday as it is scheduled to come out tomorrow. The release of this report tomorrow will help decide the trend in the crude oil markets as supply and demand factors continue to move the markets.