Explore Special Offers & White Papers from ADMIS

Positive Crude Oil Action


Despite a negative price reaction to last week’s hurricane, crude oil prices this morning are showing positive action with a portion of that optimism the result of news that Sinopec expects Chinese first half fuel demand to gain over year ago levels despite the protracted virus lockdown. Crude oil is also lifted this morning by favorable equity market action, new lows in the US dollar and a bullish long-term oil market forecast from Goldman Sachs. Certainly, US Gulf of Mexico oil output is recovering but remains below pre-hurricane levels into the beginning of this week.


While the hurricane did not create lasting damage, US Gulf of Mexico oil gas was pulled during the storm event and therefore some of last week’s rally was partially justified. However, we suspect downtime will be limited and production will be quickly revived along with transportation activity. On the other hand, there is another tropical disturbance that is forming off the northeast coast of South America and that could become an issue later this week. The near-term US weather forecast shows a very large area of below normal temperatures throughout the middle of the country, with much above normal temperatures isolated in the Northwest and that in turn should be viewed as a bearish force to start the trading.

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