Tension in the Middle East with challenges to oil-rich Iran's nuclear program and Syrian government efforts to quash demonstrations and civil uprisings also have pushed up the price of crude. Thus far this month, the energy commodity has gained roughly 8.6 percent. Iran, the second largest of the member nations of the Organization of Petroleum Exporting Countries, is seeing sanctions tighten in response to what it claims is a program to develop nuclear energy.
"Oil prices will run up further as U.S. economic data remains supportive, and Iran and Syria continue to give cause for supply-side worries," senior broker Christopher Bellew with Jefferies Bache in London told Bloomberg.
At 8:23 a.m. on Wednesday, crude oil futures climbed 0.77 percent, a 94 cent lift to $122.49 per barrel.
Reuters reports concerns about the disruption of the flow of the energy commodity from Iran are pushing up the price of oil toward its highest value in 10 months.
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.