Risk Aversion Sends Crude Oil Tumbling

The combination of euro-zone debt worries and disappointing US data sent the price of crude oil tumbling during the European session yesterday. Investor fears regarding declining demand for oil in the US was reinforced following a significantly worse than expected Pending Home Sales figure. Overall, the price of crude dropped over $2 a barrel, eventually reaching as low as $88.16. Turning to today, oil traders will want to pay attention to the US Crude Oil Inventories figure, scheduled for 15:00 GMT. Record high crude inventories in the US have been taken as a sign of decreased demand in the world's largest oil consuming country. Should today's figure come in the above expected level of 0.2M, oil could drop further as a result.

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