FXstreet.com (Barcelona) - Crude oil has subsequently erased any gains made at the end of last week, when prices shot upward on fears of supply disruption due to tropical storm Alex in the Gulf of Mexico. With the storm less likely to affect production and with risk aversion rising rapidly today on China and euro-zone jitters, crude is subsequently dropping quickly. At the time of writing, the front-month crude contract is trading $75.52 a barrel which is more than $4 off its high this past Friday.
Market sentiment is pronouncedly lower today, after the US Conference Board downwardly revised a key economic indicator for China, sending shares over the Asian giant down 3.7% by close. The anxiety over hints of a double dip recession quickly spread to the European session and most recently the US. With investors rushing to the safety of alternative investments, the strength of the US dollar is helping to pressure dollar-based commodities like oil further lower as importation is more expensive for non-dollar economies.
