Softer Demand Signs Discounted
With another new high for the move in November crude oil this morning, the bull camp extends its control deeper into the trading week. As in the number of other physical commodity markets, the crude oil market is relieved that the prospects of Fed tapering were reduced by a surprisingly soft US consumer price index reading yesterday. It should be noted that energy prices took news of the first Chinese strategic petroleum sale on September 24th in stride which is another sign of a bullish environment.
Like the crude oil market, the gasoline market has forged another higher high for the move this morning and in the process, it has reached the highest level since August 2nd in a trade that extends trend talk into another session.
While the natural gas market did not hold “all” the initial gains forged yesterday, a new contract high has been forged again this morning leaving the bull camp with technical and psychological control. Apparently, the natural gas market is not limited by news that floating supply of natural gas increased by 6.9% versus the prior week and the market has also not been tripped up by reports that US export activity has been disrupted by two hurricanes this month.
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.