CRUDE OIL
While the crude oil market was unable to initially sustain the range up action from the prior session, the market this morning was able to return to the vicinity of this week’s high. In other words, the market has clearly shown the capacity to hold up rather impressively in the face of patently bearish weekly API and EIA crude oil inventory data. Obviously, resurgent threats to the global economy from the virus spread and geopolitical fighting between the US and China has rekindled energy demand fears again.
NATURAL GAS
In another surprising reaction, the natural gas contract posted a 3-day high overnight and has managed to return to the vicinity of this week’s highs in the face of a noted tempering of hot weather in the US forecast. In fact, the weather forecast out to August 5th shows “no” significantly above normal temperature zones with the brunt of the country seeing slightly below normal temperatures. Perhaps the natural gas market is being supported by a threat of a hurricane developing in the southern Caribbean this weekend.
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.