West Texas Intermediate crude oil futures on Tuesday were losing value and set to notch a fourth-consecutive trading session of losses amid projections that U.S. inventories are pushing toward their highest level since 1931, according to Bloomberg.
For week ended May 10, supplies of the energy commodity likely pushed higher by 450,000 barrels to amount to 396 million barrels, according to a poll administered by the news source. The U.S. Energy Department is prepared to release official data on Wednesday.
"Supply-demand is skewed to the oversupply side," analyst Michael Poulsen with Global Risk Management in Middelfart, Denmark, told the news source on Tuesday. "There is currently a lot of spare capacity and global crude overproduction. The multi-decade high in U.S. supply will keep weighing on WTI."
At 10:54 a.m. on Tuesday, WTI crude oil futures slipped 0.09 percent, a 9-cent loss to $95.08 per barrel. Brent crude oil futures fell 0.35 percent, a 36-cent loss to $102.46 per barrel.
The Wall Street Journal reports the Organization of the Petroleum Exporting Countries is gradually increasing its generation of the energy commodity.
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.