The energy commodity fell after the U.S. Department of Energy indicated inventories of crude oil rose last week to their highest level in 90 days. But demand for fuel fell 8.3 percent to 17.7 million barrels per day, the lowest since 1999. Oil-rich Iran, which is under export sanctions due to its nuclear program, is in discussions with the United Nations, which pulled down tensions.
"The market is looking heavy because supplies are rising and demand is very weak," analyst Phil Flynn with PFGBest in Chicago told Bloomberg. "A major reason for the recent rise in prices was concern about Iran. The hyperbole about the Iranian situation has calmed down."
At 2:04 p.m. on Thursday, crude oil futures gained 0.06 percent, a 7 cent climb to $111.63 per barrel.
Despite the discussions between the UN and Iran, The Wall Street Journal reports analysts said refiners were preparing to capitalize on alternatives as sanctions remain in place and in some cases become more stringent.
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.