Written Commentary
CRUDE OIL
October Crude Oil was near unchanged early Wednesday but holding this week’s gains, as no progress was seen towards an agreement on reopening of the Strait of Hormuz but the rhetoric between leaders of the US and Iran was low as well. Weekly API crude stocks came in +9.1 million barrels for the week ending August 7 versus an average expectation from a Reuters poll calling for -1.4 million, while gasoline stocks were -1.5 million versus -1.2 million expected, and distillates were -596,000 versus -1.3 million expected.
PRODUCTS
September RBOB was lower early Wednesday but ULSD traded to new contract highs. The tightness in diesel appears to be more acutely felt due as the approach of harvest season adds to diesel demand while the peak gasoline travel season is passing. Traders are looking for modest declines in US gasoline and distillate stocks in today’s EIA report, with gasoline expected to be -1.40 million and distillates -1.3 million, according to a Reuters poll.
NATURAL GAS
September Natural Gas extended this week’s rally early Wednesday, reaching its highest level since July 27. The market saw a setback on Tuesday yesterday from lower LNG offtake and record US production. LSEG said average gas output in the lower 48 states has risen to 111.1 billion cubic feet per day (bcfd) so far in August, up from a record 110.7 bcfd in July. Average gas flows to the nine big US LNG export plants is estimated at 17.1 bcfd so far in August, down from 17.2 bcfd in July and 17.4 bcfd in June. LNG loadings are expected to climb as scheduled maintenance concludes, and Europe need to rebuild inventories ahead of winter.
Interested in more futures markets? Explore our Market Dashboards here.
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.
