Written Commentary
CRUDE OIL
April Crude oil was slightly higher early Friday after falling to its lowest level in a week earlier in the session. The market sold off sharply on Thursday after President Trump said US could make a deal with Iran over the next month, easing concerns about a potential attack that had developed earlier in the week. But until a deal is reached, the threat of attack (and a disruption to shipping out of the Persian Gulf) remains. The market had also fallen after the IEA issued a report that said global oil demand growth this year will be weaker than previously expected, with overall supply set to exceed demand. The Kremlin said on Friday that the next round of peace talks on Ukraine will take place next week. The US has issued a general license to India’s Reliance Industries Ltd that will allow the refiner to buy Venezuelan oil directly without violating sanctions
Oil pump and oil refining factory at sunset. Energy industrial concept. Selective focus. Creative artwork decoration.
PRODUCTS
Like crude oil, product prices bounced off overnight lows as yesterday’s selloff from President’s Trump’s somewhat conciliatory tone toward Iran may have gotten overdone
NATURAL GAS
April Natural Gas was lower early Friday, back in the vicinity of this Wednesdays’ low. The 6-10 and 8-14 day forecast maps show above normal temperatures dominating the central and eastern US, but colder than normal is dominant west of the Rocky Mountains, especially the 6-10-day. On the whole, the forecast looks a little cooler than they were Thursday morning. The weekly EIA gas storage report on Thursday was a bit bearish against expectations, but it was still a large draw.
Interested in more futures markets? Explore our Market Dashboards here.
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.
