Explore Special Offers & White Papers from ADMIS

Higher Energies


In retrospect, the crude oil market has seen a steady shift in a number of fundamentals from bullish to bearish, and yet prices have managed to hold up near 5-month highs. Perhaps prices are seeing some support from the potential for the earliest date ever for the 8th named storm of the hurricane season. From the supply-side of the equation, the market this week saw indications that OPEC would increase production next month, US production was found to have rebounded back to a 6-week high, Chinese port inventories reached a 5-month high and a large Canadian oil company has indicated almost all crude oil production in Western Canada will come back on line by the end of the year.


Certainly, the threat of a supply interrupting storm in the Gulf of Mexico combined with a much smaller than expected weekly injection tally was justification for some short covering yesterday following the large mid-July washout from $1.99 down to $1.6460. However, the smaller than expected injection to US inventories from the EIA storage report could be a one-off (maybe two-off with next week’s report) development from the weeks of much above normal US temperatures. The weekly natural gas storage report showed an injection of only 37 bcf.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started