Crude oil prices climbed on Wednesday as the leader of the largest-consuming nation opted to cut short his vacation to return to conduct fiscal negotiations before the daunting end-of-year deadline, according to Bloomberg.
More than $600 billion in tax increases and spending cuts are set to automatically begin next year if U.S. President Barack Obama and Speaker of the House John Boehner do not work out a pact regarding the fiscal cliff debacle. Increases to crude oil futures also were prompted by the arrest of intended terrorists by the United Arab Emirates.
"We were poised technically for this gain after Monday's session," market research director Addison Armstrong with Tradition Energy in Connecticut told the news source on Wednesday. "Trading volume was very light until 9 a.m. when it picked up with the open of floor trading. The target was the 100-day moving average of $90.68 and we made it."
At 12:19 p.m. on Wednesday, WTI crude oil futures increased 2.52 percent, a $2.23 gain to $90.87 per barrel. Brent crude oil futures gained 1.76 percent, a $1.91 lift to $110.70 per barrel.
Reuters reports optimism is running high for the likelihood of U.S. leaders hashing out an end-of-year pact.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.