Written Commentary
CRUDE OIL
February Crude Oil was chopping around inside Tuesday’s range in the early going on Wednesday, finding support from reduced expectations for peace in Ukraine and limitations on Venezuelan supply from the US blockade of oil shipments from that nation. The API data late Tuesday was bearish against expectations for crude oil and bullish for the products, with US crude oil stocks +2.39 million barrels for the week ending December 19 versus an average trade expectation from a Reuters poll calling for -900,000, gasoline stocks +1.09 million barrels versus +1.90 million expected, and distillates +685,000 versus +2.2 million expected.
NATURAL GAS
February Natural Gas extended Tuesday’s selloff in the early going Wednesday, and at its low it had given up more than 50% of its rally off the December low. A wintry blast has hit the northeastern quadrant of the US this week, but it is not expected to last. The 6-10 forecast shows above normal temperatures across most of the lower 48 states, with the exception of some below normal in New England and near normal form the eastern Great Lakes region to the mid-Atlantic. The 8-14 day is not much different, except that the below normal areas disappear altogether. With US production running at record levels and the weather mild, there appears to be no risk of tight supply.
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.
