Explore Special Offers & White Papers from ADMIS

Risk-On Supports Energies Start

CRUDE OIL

While the November crude oil contract this morning forged a new high for the move and a 5-day high, the market has recoiled from that level ($72.18). However, the macroeconomic environment has shifted positive for commodities and a force majeure from the Canadian tar sands area provides the bull camp with several supportive issues.

Not surprisingly, the gasoline market lagged the rest of the petroleum complex on strength yesterday and that was likely the result of gasoline stocks posting the only “build” in inventories of the key EIA measures released yesterday. Furthermore, the gasoline market saw its yearly deficit fall by more than half from 13 million to 5 million barrels.

NATURAL GAS

In retrospect, the natural gas market ran ahead of its fundamentals with the early September range up explosion. In fact, the extreme heat, record prices in Europe and twin hurricanes set a very bullish stage but prices expected the bullish fundamental condition to remain in place.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started