By Kevin Grewal, editorial director at SmartStops.netOver the past few months crude oil has been the talk of the town and its volatility has kept many investors on their toes, but could the valuable commodity be in trouble or is volatility playing its game? On July 29, crude oil took its biggest hit over the past three months dipping by 5.9% to $63.26 a barrel on the New York Mercantile Exchange as investors became wary of the health of the economy. Most notably, the Commerce Department reported that U.S. durable goods orders dropped by 2.5% from the previous month, indicating that businesses and consumers around the globe are still in save mode and reluctant to make big-ticket expenditures. The microeconomic pressures of supply and demand are also unfavorable for black gold. A report by the Energy Department suggested that stockpiles surged by 5.15 million barrels to 347.8 million in the third week of July. This increase in stockpiles left inventory of crude 9.5% higher than the five-year average for the period. Supply for crude oil is just outpacing demand and will keep prices suppressed. In addition, over the past four weeks U.S. fuel consumption has dropped 4.1% from the previous year, led by a 10.7% decline in demand for distillates. The world's heavy reliance on China as an oil consumer may be in questions as well. The Asian nation suffered its deepest daily decline in eight months on fears that the country's central bank may tighten money supply and banks could begin to restrict lending, even though they say they will continue to implement a loose money supply.