Crude oil prices were barreling toward their steepest monthly losses since 2009 on Thursday, tugged down by conjecture that reduced demand for the energy commodity could be one consequence of the widening debt crisis in the euro zone, Bloomberg reports.
The pace of inflation in May in Europe slowed down more than projections issued by economists, settling at its lowest in more than 12 months amid concerns about an expanding economic slump.
"The market seems fixed on the debt worries in Southern Europe and potential repercussions from the Greek situation spreading," analyst Michael Poulsen with Global Risk Management in Denmark told Bloomberg. "In the short term we'll see more market jitters as participants are looking at the headlines, but I'm fairly optimistic we won't see a break-up in the euro construction any time soon."
At 8:34 a.m. on Thursday, crude oil futures were even at $103.47 per barrel.
Dow Jones Newswires reports concerns about the integrity of Greece and Spain were weighing on the energy commodity as fears grew about leaders' inability and unwillingness to confront the peril posed by the debt scourge.
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.