Explore Special Offers & White Papers from ADMIS

Bullish Momentum Continues to Dominate


Even though the February crude oil contract has not forged a higher high in the early going today, prices remain near yesterday’s high in a fashion that suggests the bull camp retains control. However, overnight Asian traffic monitoring systems have registered a softening of traffic which has returned some demand fears to the marketplace. Yet another negative facing the crude oil market this morning is a recovery in Libyan oil output back above 1 million barrels per day. A less critical bearish development came from Russian suggestions that Iranian nuclear talks were going “well”.

Like the crude oil market, the gasoline market this morning has not forged a fresh higher high, but prices remain very close to yesterday’s high. Unfortunately for the bull camp, EIA gasoline stocks jumped significantly this week, they have added 18 million barrels to inventories in two weeks and Singapore weekly fuel stocks increased by 2.1% on a week over week basis. While EIA gasoline stocks rose 7.961 million barrels this week that are now only 4.728 million barrels below last year and they remain 8.591 million below the five-year average.


The explosive rally in natural gas prices yesterday was historical in nature and probably resulted in another significant wave of short covering from a 6-digit net spec and fund short position. Apparently, continued extreme cold on the East Coast of the US provided the brunt of the buying interest, and overnight reports of a reduction in production in Norway’s largest natural gas field should help moderate would appears to be a classic technical corrective setback.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started