Crude Oil Moves Higher
With another higher high for the move this morning and the highest price since early February, crude oil appears to be a “freight train” moving higher in sync with the persistent optimism being thrown off by equities. In retrospect, the energy markets also continue to feed higher off the very surprising and important unilateral offer by Saudi Arabia to reduce production by 1 million barrels per day.
While the higher close in the natural gas market yesterday was very impressive (given a low end of the range storage draw) the action this morning is disappointing given the presence of strong Chinese demand headlines and the expectation of entrenched cold in Germany. In fact, the Chinese government is threatening gas suppliers if they do not increase supply flow to keep factories operating in the face of the worst cold wave in “decades” and the government is also warning of a worsening of supply shortages ahead.
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.