Crude oil prices dropped as the USD gained strength after markets turned pessimistic on reports came out lately showing that S&P will move forward with euro area downgrades with French TV saying that the nation lost its top credit rating.
Knowing that investors moved towards low yielding assets with European stocks snapping the gains. The news reports suggested that Standard & Poor’s is set to downgrade the credit rating of several euro zone nations according to government sources, and that overshadowed the upbeat Uni. of Michigan Confidence index.
Now, eyes will be spotted the performance of the European economy, especially after the ECB lent the European banks huge amount of money, and if that money will help the euro zone to continue recovery process amid big challenges.
The outlook for crude oil prices remains generally to the downside, as persistent fears from the EU debt crisis and signs global growth is slowing are likely to keep crude oil prices under pressure, where traders will also continue to monitor the developments from the 17-bloc euro nation and the European leaders’ latest moves to contain the debt crisis.
Originally posted here
