Oil and gas prices appear to have found a floor for now after days of downward momentum spurred by disappointing economic news.
A MarketWatch report laid out the day’s energy futures results, with natural gas down 4.2 percent to settle at $3.87 per million British thermal units, while gasoline for September was up by one cent, or 0.8 percent[,] to settle at $1.86 per gallon. The financial news provider noted that crude oil was up by a 1.2 percent margin in Wednesday’s trading.
For investors, the oil and gasoline gains are not particularly impressive at first glance. However, they represent a halt, at least for now, in the slide that energy futures and other commodities have experienced in recent days.
In fact, on Tuesday a Washington Post report noted that gasoline prices had fallen to their lowest level in eight years.
Energy prices are likely to start experiencing some upward momentum assuming that more favorable economic data is reported in the coming days. However, Labor Day is less than a week away, which will mark the end of the summer driving season and the typically elevated gasoline prices that come with it.
Risk Disclosure
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.