Explore Special Offers & White Papers from ADMIS

November Rally Extends For Crude Oil


Not surprisingly, the crude oil market extended the November rally in what is very likely a further extraction of shorts that were expecting further demand destruction from infections. In fact, we suspect that fresh buying by funds anticipating progressive recovery in global energy demand on are now adding to the upward slope in prices. Certainly, the largest TSA security check readings since the beginning of the US lockdown in March last weekend could be a temporary result of the coming US holiday, seeing those numbers might inspire others to travel.


While we think the prior 2 days of upside action has been largely the result of technical short covering more limited gains are possible. On the other hand, despite natural gas showing little reaction to improved macroeconomic conditions over the past several months, that theme should now begin to lift prices. Unfortunately for the bull camp, the National Weather Service temperature forecast is not overly supportive, with US cooling gas demand areas seeing below normal temperatures and US heating gas demand areas seeing temperatures above normal.


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