Concerns about the Thursday night deadline to increase the debt ceiling in the world's largest consumer prompted West Texas Intermediate crude oil futures to hover on Wednesday, according to Bloomberg.
One day after diving 1.2 percent, the energy commodity was ebbing and flowing as discussions amongst U.S. political leaders continued negotiations regarding budgetary, economic and fiscal issues. The partial government shutdown is well within its third week.
"The U.S. is going to do the right thing, but only after exhausting all the alternatives," market analytics global head Guy Wolf with Marex Spectron Group in London told the news source on Wednesday. "If they technically breach the deadline, as it appears they might, it will lead to some volatility but I don't see it as a prolonged issue. This is not Greece."
At 9:13 a.m. on Wednesday, WTI crude oil futures edged down 0.10 percent, a dime loss to $101.11 per barrel. At 9:12 a.m., Brent crude oil futures moderately slipped 0.10 percent, an 11-cent loss to $109.85 per barrel.
Reuters reports the price of oil also was influenced by ongoing discussions between Iran and six global powers regarding the oil-rich Middle Eastern nation's nuclear ambitions.
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.