One day after the U.S. Department of Energy indicated inventories of the energy commodity last week grew by 3.9 million barrels, the sale of bonds worth the equivalent of $3.3 billion in euros tempered losses. The bond sale pushed beyond the maximum target.
"Market sentiment is better today, as equity markets and the euro advance on expectations the worst is over and most of negative news is priced in," commodities research head Eugen Weinberg with Commerzbank AG told Bloomberg. "U.S. inventories increased beyond expectations on weak demand and high supplies."
At 8:08 a.m. on Thursday, crude oil futures advanced 0.6 percent, a 71 cent lift to $118.68 per barrel.
Inventories of crude oil gained to 369 million barrels, notching the top level since late May of last year, according to the energy department.
As the host of the euro zone's fourth largest economic system, Spain is drawing attention as it attempts to stave off constrictions inflicted by the sovereign debt crisis, Dow Jones Newswires reports. Thursday's sale featured bonds in denominations of two and 10 years.
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.