Debt concerns and reduced Chinese demand for oil pushed down crude oil futures on Monday, according to published reports.
The energy commodity lost 2.1 percent of its value as the euro plunged in value amid the potential of a double bailout for Greece and Italy. Imports to China slipped 10 percent, spurring worries that demand for crude oil from one of the globe's top users will continue dropping.
"There's some pressure on oil from concerns in the euro zone," broker Tom Bentz of BNP Paribas Commodity Future in New York told Bloomberg. "The euro got hit pretty good. The negative jobs data in the U.S. from last week has cast a negative cloud over the market, and there continues to be some signs of slowing in China."
At 4:35 p.m. on Monday, oil futures were down 0.97 percent, a $1.15 drop to $117.18 per barrel.
The Wall Street Journal reports the strengthening dollar typically pushes down oil prices, and while the euro fell in value amid sovereign debt turmoil, the greenback strengthened. The ICE Dollar Index notched a value of 75.196, its highest value since May 25.
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.