Written Commentary
CRUDE OIL
With a broad-based risk off environment in place early today, a very wide trading range of $2.85 in July crude oil yesterday, and a lower close yesterday, the odds of an interim top in crude oil have increased. However, the bull camp continues to embrace improving demand expectations based on widening reopening in both US and Europe.
While the trading range in gasoline yesterday was not as significant as in the crude oil market, gasoline spent more time in negative territory than crude oil and trading volume on the last 3 days rally does not signal bargain hunting buying interest on dips.
NATURAL GAS
Like the petroleum complex, we see natural gas vulnerable to corrective action following “blow off type” action to start the trading week. Obviously, the natural gas market has been lifted by consistent evidence of expanding US LNG export activity, ongoing cold in Europe (to the end of the month) and a measure of additional buying coming from chatter of a potential early kickoff to the North American cooling season.
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.
