Preoccupations about anti-government demonstrations pushing beyond Egypt prompted West Texas Intermediate crude oil futures to climb on Monday, ceasing a string of losses from the end of the second quarter, according to Bloomberg.
On the first trading session of the third quarter of 2013, the energy commodity rose as much as 1 percent. At minimum eight people were killed near Muslim Brotherhood headquarters in Cairo, to which President Mohamed Mursi belongs.
"Today's rise came as a bit of a geopolitical lift," commodity strategy head Ole Hansen with Saxo Bank A/S in Copenhagen told the news source on Monday, also noting that prices are poised to continue climbing should protests push past Egypt's borders. "The main drivers now are geopolitics and the expected build-up in demand in the third quarter."
At 10:17 a.m. on Monday, WTI crude oil futures rose 1.38 percent, a $1.33 lift to $97.89 per barrel. Brent crude oil futures increased 1.16 percent, a $1.18 climb to $103.34 per barrel.
Reuters reports the upward drive of the energy commodity was tempered by weaker than anticipated factor data released by China, the globe's second-largest consumer of the energy commodity, which trails only the U.S.
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.