Three days of gains for West Texas Intermediate crude oil futures on Thursday came to a halt after the reduced forecast for oil demand issued by the International Energy Agency, according to Bloomberg.
Also tugging down the energy commodity was supplies of the energy commodity rising to the top level in 22 years. The IEA slashed its forecast for worldwide consumption for a third consecutive month while also projecting Europe will offer the most tepid demand since the 1980s. Investment bank Citigroup said on Thursday that crude oil prices have endured downward pressure and that pinching is poised to continue.
"Demand remains subdued and supplies are adequate," analyst Andrey Kryuchenkov with VTB Capital in London told the news source on Thursday.
At 8:35 a.m. on Thursday, WTI crude oil futures fell 0.34 percent, a 36-cent loss to $94.32 per barrel. At 8:30 a.m., Brent crude oil futures slipped 0.19 percent, a 21-cent reduction to $105.70 per barrel.
Reuters reports demand for the energy commodity is slipping due to slow economic growth in the U.S., the world's top consumer of oil.
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.