Explore Special Offers & White Papers from ADMIS

Energies Mostly Higher

CRUDE OIL

Fortunately for the bull camp, the crude oil market this morning has found some support from favorable Chinese PMI readings and from bullish psychology flowing from global equity market action. Other cushioning overnight developments were seen from lower crude oil production (in the first half) from China Petroleum and Chemical, fresh import license grants by China for domestic firms, a reduction in Oman October crude oil allocations of 20% and the potential for very disappointing big oil earnings, as that increases the likelihood of significant reductions in exploration.

NATURAL GAS

While we were unclear as to the force behind the rally in natural gas prices over the past 2 weeks, the driving market force going forward is likely to be a moderation of US temperatures and surging macroeconomic slowing fears in the US. However, the bull camp is likely to draft some support from reports that Chinese first half natural gas consumption increased by 4% and from news that the Chinese government has asked Beijing Gas to “lock-in” LNG supply for its new terminal.

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