The globe's top consumers of oil are poised to release billions of barrels of emergency reserves of the energy commodity to stave off the continued increase of crude oil as sanctions tighten against Iran, according to The Financial Times.
The U.S., the U.K., France and Japan are likely to soon approve of releasing strategic petroleum stocks in advance of sanctions levied by the European Union against the oil-rich Middle Eastern nation, which are scheduled to be executed in July. The pivotal question is whether disruption to the current supply is grave enough to warrant opening the reserves.
"The pressure to use the strategic petroleum reserve is rising," consultancy head Robert McNally with The Rapidan Group and a former high-level White House oil official told the news source. "I get the impression it is coming up this spring or summer."
Iran is under scrutiny by western nations due to its nuclear program, which the countries believe to be oriented toward the assembly of nuclear weapons.
Turkey is planning on acquiring oil from Libya as one method of minimizing its reliance by one-fifth on the energy commodity from Iran, the Turkish Press reports. Turkey is believed to be working on avoiding sanctions imposed against counties that purchase oil from Iran.
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.