Written Commentary
CRUDE OIL
November Crude Oil was higher early Thursday as hopes for some diplomacy between the US and Iran faded. The Iranian President gave a defiant speech at the UN on Wednesday following Trump’s speech on Tuesday as US and Iranian delegations were meeting (via intermediaries) to discuss terms for reopening. No progress has been reported since Iran stated earlier this week that they could reopen the strait within seven days of the US agreed to end their blockade. This outreach has also generated blowback from hardliners in Iran, who have derailed previous attempts. The weekly EIA stocks report on Wednesday was bearish against expectations for crude oil, bullish for gasoline and neutral for diesel.
PRODUCTS
November RBOB reached a another new contract high early Thursday, while November ULSD held its own inside Wednesday’s range. ULSD fell under pressure on Wednesday on a report that the Trump Administration was preparing a ban on US diesel exports, which the White House denied.
NATURAL GAS
November Natural Gas was lower early Thursday after reaching its highest level since July 9 on Wednesday. The market broke out above a two-month consolidation on what appears to be slight decline in output this week. Production for the month is still running at a record high, but its increase over last month’s record has started to ease. In addition, increase flows to LNG export plants have matched the increase in output, so demand appear sot be catching up with supply. A cooler forecast in the lower 48 has also given a boost to heating demand expectations.
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.
