Concerns about Cyprus' struggle with sovereign debt were weighing on crude oil futures on Thursday as the nation is facing a deadline regarding bailout aid awarded to it last weekend, according to Bloomberg.
Lawmakers rejected earlier this week the mandate to tax deposits at banks in exchange for the bailout aid and the European Central Bank said on Thursday that Cyprus leaders must decide how it will handle the fiscal troubles by this Monday. The nation otherwise might be frozen out of loan money.
"We're going to continue to follow every development of the Cyprus story," president Michael Lynch with Strategic Energy & Economic Research in Eastern Massachusetts told the news source on Thursday. "Cyprus is an example of what ails the euro zone. Some of the concern seems overdone because the collapse of Cyprus isn't going to bring Europe's economy crashing down."
At 2:25 p.m. on Thursday, West Texas Intermediate crude oil futures dropped 1.01 percent, a 94-cent loss to $92.56 per barrel. Brent crude oil futures fell 1.04 percent, a $1.15 drop to $107.59 per barrel.
Reuters reports Societe Generale increased its 2013 forecast for Brent crude oil prices on Thursday but it reduced the year's forecast for WTI crude oil.
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.
