The price of Brent crude oil dropped close to the $100 benchmark price for the commodity during trading on Tuesday, as concerns about possible Fed stimulus and the U.S. economy negatively affected investor sentiment.
Reuters reports that crude oil futures dipped below $106 a barrel on July 31, reversing any gains that were made by the commodity after Chinese officials noted they were looking to stimulate economic growth.
The energy commodity has fluctuated during July, and despite being up 8 percent during the month, the price of crude oil could be affected by increasing tension in the Middle East and economic uncertainty in Europe.
"For the moment, the economy remains the main focus for most investors; that isn't to say that the situation in Iran and the Middle East isn't of concern," Ric Spooner, chief market analyst at CMC Markets, told the news outlet.
Bloomberg News reports that the oil minister for Iran said that $100 a barrel seemed like a "fair" price for crude. Rostam Qasemi noted the Organization of the Petroleum Exporting Countries no longer needs to convene a meeting to discuss declining prices.
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.