Crude oil futures were losing value on Monday as concerns continued strengthening about stalled negotiations between political leaders regarding next year's automatic implementation of more than $600 billion in tax hikes and spending cuts, Bloomberg reports.
Marking a third-straight trading session of losses, the energy commodity is sensitive to ongoing developments in the globe's largest consumer of crude oil. Reuters reports President Barack Obama and Speaker of the House John Boehner, the two top negotiators, are not in Washington. Following the Christmas recess, leaders will have a handful of days to hash out a pact.
"It's all about the U.S. fiscal cliff issue," managing director Victor Shum with IHS Purvin & Gertz told Reuters on Monday. "The chances are that we will get a deal between the White House and the Republicans, but the fact that Boehner failed to get members to support his plan is worrying."
At 8:39 a.m. on Monday, WTI crude oil futures dropped 0.2 percent, an 18-cent fall to $88.48 per barrel. Brent crude oil futures slumped 0.54 percent, a 59-cent drop to $108.37 per barrel.
But prices of the energy commodity were tempered by Syrian strife as the nation struggles with a civil war, according to Reuters.
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.