Relaxing concerns about Greece's downward spiral toward defaulting on repaying bailout funds pushed up oil futures on Tuesday, Bloomberg reports.
A government report is expected to show stockpiles of the energy commodity fell for a third straight week, another factor that benefits oil futures. A Bloomberg survey of 12 analysts predicted the U.S. Energy Department's report will show an inventory fall.
"There's a little bit of optimism leading back into the market and the chances are that the Greece concerns will probably be solved some way," Jonathan Barratt, managing director of Commodity Broking Services in Sydney, told the news service. "We feel oil is due for a bit of a bounce."
At 4:01 p.m. on Tuesday, crude oil futures were down 1.15 percent, a $1.29 reduction to $110.40 per barrel.
Many aspects of the market are hinging on what happens next with Greece, a PFGBest analyst told Dow Jones Newswires. The Greek prime minister is facing a confidence vote and the nation also is forced to confront how it will handle repayments of the June 2010 bailout package while also waiting on another tranche.
A reduced demand from the U.S. also impacted the price of oil, Dow Jones Newswires reports.
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.