Economic data showing reductions to supplies in Oklahoma prompted West Texas Intermediate crude oil futures on Wednesday to increase in value, according to Bloomberg.
The Cushing site is the contract's delivery point and the Energy Information Administration indicated inventories there fell 652,000 barrels to total 49.1 million for week ended May 3. The arm of the U.S. Department of Energy stated countrywide supplies of the energy commodity increased by 230,000 barrels to amount to 395.5 million.
"WTI strength is coming from the supply drop at Cushing," futures division director Bob Yawger with Mizuho Securities USA Inc. in New York told the news source on Wednesday. "This shows that WTI is no longer bottled up at Cushing and making its way to refiners."
At 10:29 a.m. on Wednesday, WTI crude oil futures rose 0.56 percent, a 54-cent increase to $96.16 per barrel. At 10:25 a.m., Brent crude oil futures inclined 0.22 percent, a 23-cent lift to $104.63 per barrel.
Reuters reports the energy commodity also benefited from China, the globe's second-largest consumer, indicating imports increased last month. But gains were curbed by questions about global demand.
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.