Written Commentary
CRUDE OIL
While crude oil prices are trading higher today, we see that as largely the impact of short covering from yesterday’s reversal and perhaps from respect for the $65.00 level in the April contract.
With a huge range up new high for the move in RBOB putting 5-day low to high gains at nearly $0.22, and news of several refinery restarts, supply uncertainty and prices are both likely to fall.
NATURAL GAS
The natural gas market suffered another significant chart breakdown on Monday and appears to be on a path to quickly retest the late January low down at $2.5830. However overnight news is offsetting with US gas production recovering by 33% since the Texas closure and reports that LNG global floating supply declining 51% over the last week and reaching the lowest level since April last year.
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.
