Concerns about the simmering geopolitical issues between Russia and Ukraine prompted West Texas Intermediate crude oil futures to advance on Friday, marking a second consecutive trading session of gains for the energy commodity, Bloomberg reports.
The International Energy Agency increased its demand forecast, which also benefited the price of crude oil as the trade week neared its close. Voters are prepared to cast ballots as to whether Crimea will secede from Ukraine and be annexed by Russia.
"The IEA is predicting higher demand and a stronger global economy and that's supportive for the market," analyst and broker Gene McGillian with Tradition Energy in Stamford, Connecticut told the news source on Friday. "With the referendum in Crimea, nobody wants to be on the short side going home this weekend."
At 9:36 a.m. on Friday, WTI crude oil futures rose 0.57 percent, a 56-cent climb to $98.76 per barrel. At 9:25 a.m., Brent crude oil futures edged up 0.17 percent, an 18-cent lift to $107.57 per barrel.
Reuters reports the top refiner in Japan slashed its yearly contract with Iran for the energy commodity by 27 percent.
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.