Written Commentary
CRUDE OIL
The initial weakness in energy prices this morning would appear to suggest that prices have become “too expensive” as stellar Chinese oil import data overnight should have provided another leg up in prices. In fact, Chinese 2020 crude oil imports jumped 7.3% in a pandemic impacted year and China added new refineries which should increase their need for crude oil in lockstep fashion.
NATURAL GAS
Obviously, strong Chinese gas imports provides the Natural gas market with a very important fundamental underpin. In fact, Chinese gas and LNG 2020 imports increased by 5.3% in a pandemic year and reached a very important level of 101.66 million tons and that demand news is magnified by a significant cold surge.
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.
