Stockpiles climbing to their top level since 1990 pulled down the price of crude oil futures on Thursday, according to The Associated Press.
Economic and financial struggles in the euro zone as well as slow development and growth in the U.S. labor market indicate a reduced demand for the energy commodity. The U.S. Energy Department noted on Wednesday that U.S. supplies of crude oil rose last week to nearly 380 million barrels, the highest amount since 1990.
"One could perhaps argue that with inventories building and global oil demand conditions softer in the first quarter, prices were on the high side to begin with," states a report penned by Barclays, the AP reports. Nonetheless, "the path of least resistance in prices is likely to be a slow grind higher from here in the coming months."
At 3:39 p.m. on Thursday, crude oil futures fell 0.71 percent, an 80 cent loss to $112.40 per barrel.
China, which trails only the U.S. for consumption of the energy commodity, also was likely to minimize its demand for crude oil as trade data indicated a slowdown, Reuters reports.
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.
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.
