Bloomberg reports the U.S. Energy Department might state on Wednesday that supplies will climb for the third straight week.
"Demand in the U.S. is still a bit weak," Eliane Tanner, an analyst at Bank Sarasin & Cie. in Zurich, told the news service. "But demand from emerging markets is still strong. From a fundamental point of view the correction was overdone as the supply situation in Middle East-North Africa region is still not resolved, so there's a bit of upside for prices."
At 1:31 p.m. on Tuesday, Brent crude oil futures climbed 0.62 percent, a $0.72 climb to $116.62 per barrel.
"As we continue to expect higher prices near-term, we view the recent dip in oil as short-term buying opportunity," according to analysts led by New York-based head of commodities research Francisco Blanch. "With limited oil supplies and a supportive demand environment in the short-run, Brent crude oil prices should still trade close to an average of $122."
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.