Crude Drops Sharply on Equity Losses and a Strong Dollar
Posted on 07. Apr, 2009 by admin in Crude Oil
The price of Crude Oil fell sharply yesterday as a strong Dollar and weaker equity markets dampened investor’s sentiment. Crude largely tracked U.S. equity markets which were sent lower on worries in the banking sector and overall market attitudes. This was the case with the previous month when Oil prices rose, tracking the rise of global stock markets.
These rallies and drops in the price of Crude present a terrific opportunity for traders to take advantage of market volatility. As the commodity follows the tone set in other financial markets, gains can be made by taking positions in the same direction of the U.S. equity markets. If the trend continues today with further losses in the Dow Jones, Crude could finish the trading day at $50.
