Explore Special Offers & White Papers from ADMIS

China Crude Oil Production Increase


While we think the energy-markets have already factored some portion of a gradual improvement in demand as the world comes out from under the pandemic, it would appear as if those expectations have been rekindled into the opening today. Fortunately for the bull camp, the markets were presented with favorable Chinese economic data as China overnight saw September crude oil production increase by 2.4% over year ago levels which in turn could have dampened Chinese crude oil import demand expectations.


While we have been incredulous with the natural gas market’s capacity to rally recently and remain within striking distance of the 2020 highs, positive Chinese economic data overnight and evidence that Chinese November gas demand is expected to rise 19% on a month over month basis gives significant credence to expectations of strong Chinese LNG imports from the US. Certainly, the natural gas surplus storage situation has moderated from extremes, but inventories last week were still more than 10% above their 5-year average for this time of the 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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started