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Crude Oil Declines for Sixth Day on Weaker Economic Prospects

August 3, 2011 at 19:22 by Andriy Moraru

The crude oil is falling for the 6th day on the spot market now, weakened by the poor prospects for the US economic growth. In addition, today’s drop is the biggest one since June 23.

The main factor for the oil’s decline, by the words of the market experts, is the low outlook for the US economy. The government’s measures to cut the budget spending and the potential credit rating downgrades, albeit not very probable, — they all press heavily in the industrial commodities, of which oil is the most volatile one.

In addition, the crude oil inventories continued to grow in the United States. As the today’s report shows, the commercial reserves of this commodity has reached 355 million barrels.

The spot price for Brent blend of oil decreased from $116.18 to $112.99 per barrel as of 19:20 GMT today. The lowest daily level was at 112.79 — the price minimum since July 6.

If you have any questions and comments on the commodities today, use the form below to reply.

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