China Demand Bolsters Crude
Apparently, the crude oil market has discounted an extremely negative long-term energy demand recovery forecast from the IEA as prices have spent the entirety of the early trade today in positive territory. However, very strong Chinese oil import data has bolstered confidence again in Chinese oil demand with September oil imports up 2.1% over the prior month and January through September crude oil imports up 12.7% on a year-over-year basis.
While the natural gas contract made an impressive range up probe yesterday and returned to the highest level since the major September 25th high, we do not see the bullish fundamental arguments to suggest that prices will remain firm. In fact, US weather has shifted bearish with a very large portion of the US seeing slightly below normal temperatures and the only tropical storm threat more than a week off from any potential US landfall.
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.