Written Commentary
CRUDE OIL
While the latest Gulf Coast hurricane has sparked fresh supply fears, we see the supportive impact as a temporary situation. In other words, the storm has already made landfall and has merely delayed or complicated the restart of US production and refinery activity. On the other hand, the International Energy Agency provides the bull camp with fresh fuel with its statement that vaccines are set to “unleash” energy demand. Furthermore, the IEA indicates that the world will “have to wait” until October to see extra supply begin to dent the rally in prices.
With another higher high for the move, positive global energy demand views from the IEA, and another storm likely hindering US refinery activity the bull camp extends control over RBOB.
NATURAL GAS
With the natural gas market extending on the upside again overnight and reached the highest levels since early 2014, the next upside area of importance on the weekly charts from June 2014 is moderately higher up at $5.45. Apparently, the market is unconcerned about disruption of export activities from hurricane Nicholas and from news that supply in global floating storage increased by 5.6% on a week over week basis.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
