Crude oil dropped to a new low today, an extension of the recent sell offs for the commodity.
MarketWatch reported that on the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $87.91 a barrel, falling 93 cents in the Globex electronic session. November Brent crude on London's ICE Futures exchange declined 97 cents to $91.33 a barrel.
The Wall Street Journal wrote that crude prices in the U.S. and the rest of the world have been falling due to high supply and flagging demand. The Journal also noted that while demand was high in the U.S. over the summer due to ramped up production that led to low prices, the crude refineries' seasonal shutdowns for maintenance in September and October may have also contributed to the weak demand now.
According to MarketWatch, the IMF's grim global economic growth forecasts and the U.S. Energy Information Administration's announcement that U.S. oil demand dropped may also be keeping the price of crude down, having scared investors away from the 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.