Explore Special Offers & White Papers from ADMIS

Downturn in Petroleum Prices?

CRUDE OIL

We see the crude oil market vulnerable to a revisiting of consolidation low pricing down at $57.29 in the May contract, but a further wash down to $55.00 should not be ruled out given that the US daily infection rate on Monday jumped back above 60,000. In other words, without the US daily infection rate falling to a new lower range (below 39,000), improved demand timing might be pushed further into the future.

NATURAL GAS

The natural gas market remains delinked with classic macroeconomic signals and prices have remained near yesterday’s spike down failure. In fact, we doubt that a massive risk-on broad-based commodity market rally will lift gas prices in their current situation. With the bull camp heavily reliant on strong demand news, prices are likely to remain under pressure because of a Bloomberg forecast overnight projecting a decline in Chinese LNG demand of 3.9% this month.

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.

Registered in England No. 2547805 a subsidiary of Archer Daniels Midland Company. Risk Warning: Investments in Equities, CFDs, 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 indeed may incur additional liabilities. These Investments may entail above average financial risk of loss, and investors should therefore carefully consider whether their financial circumstances and investment experience permit them to invest and, if necessary, seek the advice of an independent Financial Advisor. Some services described are not available to certain customers due to regulatory constraints either in the United Kingdom or elsewhere.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started