The price of crude oil futures fell to its lowest in value in nearly one week of trading on Thursday as western nations pondered the possibility of accessing emergency reserves of the energy commodity, according to Bloomberg.
Inventories of crude oil climbed markedly in the U.S., which is recognized as the globe's biggest consumer of oil. The prime minister of France noted that the U.S. and European Union agreeing to release strategic reserves is likely. The oil minister of Saudi Arabia, the top-producing of the nations of Organization of Petroleum Exporting Countries, said he wants to see oil prices fall.
"We've had a small break in the uptrend," trader Gerrit Zambo with Bayerische Landesbank in Munich told Bloomberg. "There's uncertainty about where we go from here. Prices aren't high enough to be scary, and not low enough to be a buying opportunity."
At 9:26 a.m. on Thursday, crude oil futures fell 0.06 percent, an 8-cent fall to $124.08 per barrel.
Dow Jones Newswires reports the price of crude oil followed the downward tack of the shared currency of the European Union, which is suffering due to indications of the sovereign debt crisis manifesting again.
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.
