Crude Oil Prices Fall On Strong USD

Crude oil prices are falling this afternoon on a very strong move in the USD. Investors often buy commodities during this time of the year such as oil as a hedge against inflation when the dollar weakens and then clearly sell when it when the dollar strengthens. Some analysts we have read reports on expect growth in demand from developing countries such as China will help make up for slower economic recovery here at home.

Per the USO chart above you can all see that it’s still due for more downside in the coming week or so before hitting major support.