The U.S. Energy Department said supplies of crude oil gained 3.65 million barrels to amount to 379.5 million barrels, representing the highest amount since August 1990. Results of Greek elections this past weekend threaten to unravel the Aegean nation's second tranche of bailout aid since June 2010 as the shared currency of the European Union also is feeling the pinch of turmoil prompted by the sovereign debt crisis.
"We're facing price pressure on the supply side and the demand side," chief executive officer David McAlvany with McAlvany Financial Group in Colorado told Bloomberg. "We continue to see big increases in crude supply. There's palpable fear in Europe, and it's not limited to Greece."
At 12:37 p.m. on Wednesday, crude oil futures dropped 0.43 percent, a 49 cent loss to $112.24 per barrel.
The Associated Press reports U.S. inventories of crude oil presently are 2.5 percent higher than stockpiles from one year ago, according to the U.S. Energy Department.
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.