Written Commentary
CRUDE OIL
Crude Oil prices were higher again early Wednesday on further escalation of hostilities in the Middle East, with the trade looking at a protracted interruption in supply and the possibility that the workarounds that exporters had managed to use to get oil out of the Persian Gulf, such as ship to ship transfers and diverting exports to the Red Sea, also being threatened. Iran said it had attacked 10 ships near the strait. The US sank five Iranian oil tankers. Iran also said it had fired ballistic missiles at a base used by US forces in Jordan. The US has announced a new policy of attacking Iranian tankers in retaliation for fire that threatens its warships. Iran also said it is imposing a wider off-limits zone around the Strait of Hormuz.
PRODUCTS
October RBOB was lower early Wednesday despite crude oils moves to new highs, while October ULSD was higher but short of last week’s highs. The increased in hostilities in the Mideast this week has pushed crude supply to the forefront, while products have already seen significant rallies.
NATURAL GAS
October Natural Gas was lower early Wednesday as the market once again failed to follow through on a rally. US gas production continues to run at record high levels, offsetting potential increases in cooling demand due to warm weather as well as a increased LNG exports. LSEG said average gas output in the US lower 48 states is running around 113.7 billion cubic feet per day (bcfd) this month, up from a monthly record high of 112.2 bcfd in August.
Interested in more futures markets? Explore our Market Dashboards here.
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.
