Written Commentary
CRUDE OIL
With Brent crude oil reaching $60, US equities posting new all-time highs to start the trading week and ongoing widespread views that global oil stocks will continue to narrow, the bull camp retains control. A Bloomberg story overnight indicates that global supplies have declined by 300 million barrels since the aggressive OPEC plus production cuts last May.
While the gasoline market spiked higher at the end of last week, the market reversed from that high and closed $0.024 below the high in a fashion that hints at an intermediate top. Perhaps the markets are concerned with the recent narrowing of the US gasoline year-over-year deficit which declined to 8.19 million barrels versus 14.8 million barrels 2 weeks prior.
NATURAL GAS
While extreme polar-type temperatures were seen in a large portion of the US over the weekend and many areas see ongoing cold weather directly ahead, it is possible that the extreme cold is “too little, too late” for the bull camp.
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.
