For the first time in more than two decades, representatives at meetings for the Organization of Petroleum Exporting Countries in Austria could not concur. Six nations challenged a group led by Saudi Arabia, whose reputation for having the OPEC meetings follow its lead is renowned.
"It was one of the worst meetings we've ever had," Saudi Arabian oil minister Ali al-Naimi told Bloomberg. "We were unable to reach an agreement."
By 20 minutes after the meeting ended, crude oil futures surged 2.7 percent.
At 3:58 p.m. on Wednesday, crude oil futures gained 0.92 percent, a $1.07 increase to $117.85 per barrel.
Reuters reports the breakdown in negotiations prompted an uptick of 1 percent in the Standard & Poor's 500 energy index.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.