Increased demand forecast by the Organization of the Petroleum Exporting Countries helped drive up the price of West Texas Intermediate crude oil futures on Tuesday, according to Bloomberg.
The energy commodity pushed to its highest price in more than seven days as OPEC noted its daily supply this year will be roughly 29.8 million barrels per day. That represents an increase of 0.3 percent from estimates issued last month.
“OPEC’s statement that they will need to pump an additional 100,000 barrels this year and the upcoming IAEA inspections in Iran will be followed, but currency issues are the main driver today,” futures division director Bob Yawger with Mizuho Securities USA Inc. in New York told the news source on Tuesday. “The G-7 announcement has pushed us into positive territory.”
At 12:58 p.m. on Tuesday, WTI crude oil futures rose 0.45 percent, a 44-cent lift to $97.47 per barrel. At 12:57 p.m., Brent crude oil futures gained 0.18 percent, a 21-cent increase to $118.29 per barrel.
The Wall Street Journal reports the energy commodity gained as the U.S. dollar lost value on Tuesday.
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.
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.
