The drop in supplies was the most in 10 years and indicates the globe's top economic system is poised to steer clear of dipping into an economic recession. The U.S. Energy Department indicated inventories dropped 10.6 million barrels, representing the sharpest drop since early 2001.
"The big draw was quite bullish," trader Gerrit Zambo with Bayerische Landesbank in Munich told the news service. "Macro data in the past week has been mostly positive. I'm slightly optimistic that we won't fall into a deep recession, and if recession comes it'll be over quicker than people expect."
At 10:39 a.m. on Thursday, crude oil futures rose 0.38 percent, a 41 cent lift to $108.12 per barrel.
Dow Jones Newswires reports the price of the energy commodity was pushed in both directions by economic data. While the U.S. economy grew less than previously projected during the third quarter, claims filed for jobless benefits fell.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.