Crude oil continues to trade in a tight range, but it is skewed more to the downside as supply and demand fundamentals remain weak. Luke Rahbari of Stutland Volatility Group tells TheStreet's Jill Malandrino that it is the short-term, numbers that is keeping crude down on a day-to-day basis. The strength in the U.S. dollar versus the euro due to the Greece debt crisis is also putting pressure on crude. Commodities are priced in U.S. dollars, so as the greenback moves higher, instruments like oil and gold generally move lower, and the inverse applies due to the strong correlation in the moves. Rahbari says crude oil has been trading in a much tighter range for the summer than he expected. The summer driving season is typically positive for crude because supply dwindles down as drivers pick up demand for gasoline, but the market is not seeing the drawdowns it needs.
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