The specter of worsening conditions in the euro zone with debt-hobbled Greece and high supplies in the U.S. pulled crude oil futures to their lowest price in more than six months on Wednesday, according to Bloomberg.
The U.S. Department of Energy indicated stockpiles of the energy commodity gained 2.13 million barrels last week to amount to 381.6 million barrels as crude oil futures dropped for a fourth consecutive trading session. Finance minister Wolfgang Schaeuble of Germany, host of the euro zone's largest economic system, said Greek voters will indicate next month when they return to the polls whether the Aegean nation will remain in the 17-nation euro zone.
"We are still not out of the woods yet," director Tom Bentz with BNP Paribas Prime Brokerage in New York told the news source. "The focus is still on Europe. All the markets are going to be dependent on how things go there."
At 1:48 p.m. on Wednesday, crude oil futures fell 1.48 percent, a $1.65 loss to $109.80 per barrel.
Thus far this month, crude oil futures have fallen roughly 12 percent, largely because of increasing stockpiles, The Associated Press 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.
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.