Crude Oil Price Update-Futures Slightly Decline after Advancing Over the Weekend

Oil futures slightly slipped today, after rising over the weekend on account of optimism from the G-8 regarding the condition of the global economy. WTI crude futures fell by a slight 0.06 percent to USD $ 100.53 a barrel. Brent futures declined by 114.87 a barrel.

With the markets expected to remain closed in the US and UK today on account of a holiday, there is no outright reason for the slip in crude futures, apart from the fact that it was probably spurred by heavy selling in order to take advantage of the rise in oil futures.

At the end of a two-day summit in France, leaders of the G-8 stated in a statement that the global economy was becoming increasingly self-sufficient, an announcement which led to a rise in stock indexes and the price of commodities. Furthermore, the Dollar Index declined after it was revealed that purchases increased in the US by 0.4 percent last month, lower than the expected increase of 0.5 percent. The depreciation of the Dollar increased the attractiveness of commodities as an alternate investment.

The condition in the Middle East is still very volatile. With Syria already in the grip of widespread protests, guards in Yemen killed 15 members of the Nihm tribe. This volatile situation is igniting fears about a widespread breakdown of law and order in the region severely disrupting oil supplies, and it led to the price surge in oil futures over the weekend.