The US Energy Information Administration reported that domestic crude inventories dropped for two straight weeks. This eased concerns that excess supply would undercut prices of light, sweet crude which was quoted at $74.64 a barrel on Thursday morning.
According to the Wall Street Journal, however, these factors weren’t “accompanied by a clear increase in demand,” which might hold back further rises until in the price.
S&P 500 futures also rose, reported Reuters, on news that Chinese exports held steady and US jobless claims fell in the past week.
Stock market futures and crude oil futures generally tend to move together, as oil tends to be a leading indicator, implicated in practically every step of most industrial and commercial processes. However, it is possible for oil to advance or retreat on factors unrelated to economic growth, notably supply shocks and political turmoil in oil-producing nations.
Stocks in Europe also climbed before trading began in New York, but the continuing sovereign debt crisis has a long way to go before any clear direction can be discerned in euro markets.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.