Weak Chinese Demand Causes Oil to Drop

The price of crude oil fell during yesterday's trading session, as China reported a drop in imports caused by weakened demand. Prices fell by about a dollar during the European session, reaching as low as $101.67 a barrel. Later in the day, the commodity staged a slight reversal and stabilized around $101.95. Turning to today, traders will want to pay attention to the US Crude Oil Inventories figure, set to be released at 14:30 GMT. Last week's figure came in at a surprisingly high 9.0M barrels, which was taken as a sign that demand in the US has decreased and resulted in the price of oil tumbling. Should today's news show a similar rise in US inventories, oil may take additional losses going into the rest of the week.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard