Explore Special Offers & White Papers from ADMIS

Slim Rally in Energies

CRUDE OIL

The energy markets will start today in proximity to multi-year highs but crude oil did not make a fresh higher high overnight. The bull case is threatened early today by a stronger Dollar and a potential OPEC Plus output increase going into the weekend. In fact, overnight a large Russian energy company CEO suggested that more supply is needed as oil prices are poised to regain $70.00. Going forward, the bull camp needs persistent evidence of improving demand as supply is clearly capable of increasing in the coming weeks.

While both product markets reached new multi-year highs, the product markets finished Thursday with mixed results. However, the gasoline market has forged a fresh higher high for the move early today and is back to multiyear highs in a fashion that suggest favorable demand views continue to fuel the rally.

NATURAL GAS

Natural gas prices remain on-track for a positive weekly result but are likely to see volatile action during today’s trading. July natural gas continued its pullback from Tuesday’s 2 1/2 week high as they went on to post moderate losses. A stronger Dollar put the market under early pressure, and that may continue today if US jobs data exceeds market expectations.

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