Indications of a stabilizing housing market helped push crude oil futures to their highest level in nearly one month, Bloomberg reports.
As the aftermath of Hurricane Irene subsides, refineries on the East Coast are firing up their operations anew, also a contributing factor to the energy commodity's gains.
"We're probably seeing the residual impact of Irene," president Stephen Schork of the Schork Group energy advisory in Pennsylvania told Bloomberg. "The product markets are leading us higher. It's the penultimate day for trading the September gasoline contract, which you can deliver summer-grade gasoline against."
At 4:22 p.m. on Tuesday, crude oil futures increased 1.91 percent, a $2.14 increase to $114.02 per barrel.
Dow Jones Newswires reports oil futures gained due to domestic and geopolitical events. The U.S. Federal Reserve is expectated to resume policies of monetary easing, which was suggested by the president of the Federal Reserve Bank of Chicago who said the economy could use a boost.
Amidst warnings about militants attacking Southern Israel, the nation dispatched two warships to the Red Sea border with Egypt, from where the attack would be launched. Unrest in the oil-rich Middle East typically drives up oil prices.
Risk Disclosure
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.
