U.S. jobless claims' downward drive along with the deal achieved by Greece and its international creditors helped propel crude oil futures toward a third consecutive day of gains on Thursday, according to Bloomberg.
For week ended February 4, unemployment benefit applications fell by 15,000, according to the U.S. Department of Labor. Greece and its private creditors reached a deal on Thursday to help the Aegean nation stave off defaulting on its financial obligations, some of which are due as soon as next month.
"The jobs data showed the U.S. economy is definitely looking better than it was, and it's providing some strength to oil," research director Kyle Cooper with IAF Advisors in Houston told Bloomberg. "Greece is probably the driving factor for the market's rally."
At 2:41 p.m. on Thursday, crude oil futures increased 1.15 percent, a $1.35 lift to $118.55 per barrel.
The Wall Street Journal reports that the decrease in jobless claims fuels speculation that the U.S., host of the globe's biggest economy and the largest consumer of oil in the world, is recovering nicely from the deep recession that began in 2008.
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.
