Written Commentary
CRUDE OIL
It goes without saying that volatility will remain a fixture in the oil markets with sudden changes in supply and demand possible on an hourly basis. An example of shifting sands in the oil market was seen this morning with reports from the UAE energy minister who indicated there was “no” OPEC plus agreement to allow members to increase production individually. In another overnight surprise supply development, the trade became aware of the potential loss of 5% of Canadian tar sands output due to annual maintenance.
Not to be left out, the gasoline market yesterday forged a massive trading range of $0.60 yesterday with the range down failure rupturing bullish technical signals. Obviously, the breakdown in crude oil off the prospect for higher supply spilled over into the gasoline market which continues to face threats of lost demand due to skyrocketing prices.
NATURAL GAS
Fortunately for the bull camp, the natural gas market was already in a significant correction prior to the rollover down in the petroleum complex yesterday. Unfortunately for the bull camp, the Russians have indicated they will guarantee the safety of two natural gas pumping stations inside Ukraine and that combined with reports of ongoing flow through the Yamal pipeline lowers the threat of tight supply in the near term. Other negative developments are indications from Iran that their gas exports have reached 4.6 billion so far in 2022 and forecasts of mild Northwest Europe temperatures.
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.
