Written Commentary
CRUDE OIL
While crude oil prices remain near 5-day highs to start today, the rejection of yesterday’s high at $74.15 creates a measure of overhead resistance for prices. Issues supporting prices near 5-day highs are market assumptions that OPEC plus will not put more oil onto the market next month, further new highs in US equities and reports that Spain saw crude oil imports jump 28% in May over year ago levels.
Both products held within inside-day ranges yesterday before RBOB and ULSD finished with mild losses, and some suggest that signals a shift away from the bull case. While the North American summer driving season has been underway for six weeks, it was only with last week’s record-shattering implied gasoline demand reading (the first above 10 million bpd on record) has been in proximity to the summer highs seen in (pre-pandemic) 2018 and 2019.
NATURAL GAS
The natural gas market managed a 5-day high overnight and generally remains within striking distance to the 4-day high forged yesterday. With strong overall Chinese exports for June released overnight stronger that expected Chinese demand for natural gas should be embraced especially following news that Chinese June coal imports reached new highs for this 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.
