Crude oil is starting the new week on a down note as economic worries continue to dictate near-term price direction. Last week oil lost an enormous 8.6% after double dip fears really started to gain traction amid dismal economic reports out of the U.S.
Equally disappointing figures in Europe and China did not help matters and now traders are on pins and needles awaiting this week’s readings, as they try to gauge the health of the global economic recovery.
Further evidence of a slowdown or worse will likely send crude oil plummeting further, while positive readings could lead to stabilization or even a rally. On Tuesday, the ISM will release their services index.
A reading of 55 is expected for the month of June, down from 55.4 in the prior month. With regard to technicals, look for support near the key $69.50 level, while resistance lies at $75.50.