Written Commentary
CRUDE OIL
With sharply lower trade throughout the energy complex taking place yesterday in the face of very positive US jobs-related data, and projections that a major supply chokepoint (Suez Canal) could be blocked for “at least 10 days”, it-is-clear that the markets are not embracing bullish fundamentals.
Relatively speaking, the gasoline market did not forge as much volatility in the Thursday trade as in the prior 2 trading sessions of the week, and for some that gives added credence that the quasi-double low forged earlier this week represents some form of value at $1.8746 in the May gasoline contract.
NATURAL GAS
With the natural gas market breaking out to the highest level since the major spike down move on March 12th, it certainly appears as if the paradigm has shifted in favor of the bull camp. However, it is difficult to point to a specific fundamental shift responsible for the rally today unless the news of a longer shut down of the Suez than was expected has created supply fears.
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.
