Energies Mostly Higher
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.
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.
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.