The energy commodity snapped three-straight sessions of losses amid speculation that consumers in the globe's top consumer of oil might be poised to consume even more oil. Inventories of crude oil are likely to plunge to their lowest level in eight months, according to a Bloomberg survey regarding a report scheduled for release on Wednesday by the U.S. Energy Department.
But Dow Jones Newswires reports the Federal Open Market Committee was scheduled to announce its next steps to spur the slumping economy while the monetary units of emerging markets suffered while focus sharpened on the U.S. central bank. The FOMC is the policy-making arm of the U.S. Federal Reserve.
"There's optimism that the Fed Open Market Committee will announce additional measures (Wednesday) to boost economic growth," broker Tom Bentz with BNP Paribas Commodity Futures in New York told Bloomberg.
At 12:10 p.m. on Wednesday, crude oil futures gained 1.34 percent, a $1.48 increase to $112.02 per barrel.
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.