Monetary easing and strategies of boosting the economies of the globe's two largest consumers of crude oil helped drive up the price of the energy commodity's futures on Thursday, according to published reports.
The People's Bank of China slashed interest rates by 25 basis points for the first time since 2008 on Thursday while Vice Chair Janet Yellen with the U.S. Federal Reserve said additional intervention might be necessary as the U.S. economy is not immune from hiccups, Bloomberg reports. The U.S. is the world's top consumer of oil while the Asian nation ranks second.
"The one word for this market is growth," analyst Carl Larry with energy advisory Oil Outlooks and Opinions told The Wall Street Journal. "The two top consumers, the U.S. and China, are easing their rates to stimulate the economy, or about to act, and that will stimulate oil demand growth."
At 10:25 a.m. on Thursday, crude oil futures gained 0.83 percent, an 84 cent gain to $101.48 per barrel.
Bloomberg reports president Mario Draghi of the European Central Bank said leaders and officials are poised to implement strategies as a method of countering the euro zone's bleak outlook.
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.