Brent crude oil futures were approaching their highest prices in 30 months amidst threats against exports of the commodity caused by tumult and uprisings in the oil-rich regions of the Middle East and North Africa, Bloomberg reports.
The U.S.-led alliance of warplanes struck Libyan ground forces loyal to Muammar Gadhafi and an air base inside the country. Portugal is reportedly on the brink of requesting a bailout for its debt-hobbled banks, and some estimates peg the price tag at $99 billion.
"The Middle East is still a major concern," said Tom Bentz, a broker with BNP Paribas Commodity Futures in New York, told Bloomberg. "Fighting continues in Libya and there are problems in other countries. We have concerns about the euro zone again with Portugal."
Shortly after 12 a.m. on Thursday, Brent crude oil futures were up 0.55 percent, a 0.64 cent rise to $114.91 per barrel.
"We're seeing continued momentum behind prices," Matt Smith, a commodities analyst for Summit Energy in Louisville, Kentucky, told the news service. "There's no encouragement to sell off with so much uncertainty, not just with Libya but Yemen, and we've also got Syria this week."
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.