Increased generation and climbing consumer confidence tempered losses to crude oil futures on Tuesday in the globe's largest consumer of the energy commodity, according to Bloomberg.
In anticipation of a U.S. Energy Department report set for release on Wednesday, Bloomberg analysts predicted supplies last week increased by roughly 350,000 barrels. The Conference Board issued a confidence index indicating the rate grew this month to its highest in more than 48 months.
"There is an expectation that U.S. oil production and inventories are still growing and the market balance is just not that tight," commodities research director Kyle Cooper with IAF Advisors in Houston told the news source on Tuesday. "Consumer confidence has definitely improved."
At 12:56 p.m. on Tuesday, WTI crude oil futures edged up 0.03 percent, a 3-cent lift to $87.77 per barrel. Brent crude oil futures fell 0.58 percent, a 64-cent loss to $110.28 per barrel.
Reuters reports losses endured by Brent crude oil futures were attributable to questions arising about budgetary negotiations in the U.S. amongst political leaders regarding the fiscal cliff.
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.