Written Commentary
CRUDE OIL
Once again the crude oil market ground its way into a new high to start the trading week. Therefore, it is possible that some fund trading systems will place additional buy orders and in turn provide crude oil with upside follow-through. A growing list of US states are at fully opened status and the schools are ending their year and vacation driving should pick up.
As indicated already, weekly product inventories in Europe fell last week, US air travel is picking up and US schools are ending their school years which in turn should boost summer driving vacation demand for gasoline.
NATURAL GAS
With a massive range up extension at the end of last week, it would appear as if the natural gas market has come into vogue among fund traders. In fact, given the rising expectation of inflation, traders and fund managers might consider natural gas one of the cheapest commodities and therefore a possible hedge against building inflation.
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.
