Crude (USO) Down Sharply on Greece Concerns and Expirations

Crude Futures are down sharply today on dollar movements and contract expiration.

Light Sweet Crude (TWI) is trading down sharply to $80.29 -1.88 or 2.29% just above support of $80.00. Earlier today crude hit its day low of $79.86. United States Oil Fund, LP ETF, NYSE: (USO) the energy ETF is also down sharply to $39.03 -$.89 or 2.23, just off its day low of $38.85.

Since Oil and crude is traded in U.S. currency its price tends to fall as the dollar rises and makes contracts more expensive to buy with foreign currency.

Earlier this week crude rallied after the Fed stated they would hold interest rates. Prices hit resistance on Wednesday and failed to break through to new highs thereafter. They have now fallen as worries about Greece's debts forced the euro lower.

In addition, the April crude contract goes into delivery on March 23 and traders are liquidating ahead of the date. Look for support on Crude at $80.00 and on USO at $39.00. We would be sellers until the April contract goes into notice period and May takes precedence on March 24th.