The energy commodity increased 4.4 percent as satellite images indicated inventories of crude oil in Cushing, Oklahoma decreased 2.6 percent during the period from October 18 to October 21. The slippage prompted Brent crude to slip to its lowest level in 12 weeks against West Texas Intermediate.
"The fundamentals in the U.S., at least the inventory numbers, have been quite a bit more bullish recently," research director Kyle Cooper with IAF Advisors in Houston told Bloomberg. "Cushing inventories are no longer bulging, so it makes sense that we are starting to see WTI come more into line with other grades."
At 5:14 p.m. on Monday, crude oil futures gained 1.5 percent, a $1.64 gain to $111.20 per barrel.
Reuters reports an English engineering company is preparing to return to Libya and resume oil production as the nation's new leadership works on rebuilding after the nation brought down leader Moammar Gadhafi. The autocrat of 42 years was killed late last week.
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.