Crude oil futures hovered around even after rebounding from their lowest value in seven weeks, Bloomberg reports.
Driving the energy commodity higher was optimism about the European Central Bank intervening to address the sovereign debt crisis, which would enhance demand for fuel by encouraging development and growth. An official with a euro zone central bank anonymously said policy makers are set to discuss resuming covered bond purchases next week, which drove crude oil as much as 1.3 percent higher after crude touched its lowest price since August 9.
"There's some talk that the European policy makers are putting together some new measures to ease the region’s debt crisis and that’s making the markets a little more stable," broker Tom Bentz with BNP Paribas Commodity Futures told Bloomberg. "The markets are still worried about the whole economic picture and a Greek default."
At 1:31 p.m. on Monday, crude oil futures gained 0.22 percent, a 23 cent rise to $104.20 per barrel.
Reuters reports optimism spread in Europe about leaders' abilities to control the sovereign debt crisis but markets are due to remain volatile since it remains unclear if leaders' efforts will work.
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.