Written Commentary
CRUDE OIL
October Crude Oil extended its rally early Thursday as the market continued to accept the likelihood that no solution to the loss of Persian Gulf supply was coming very soon. Iran and the US have been stepping up their rhetoric, and any negotiation for reopening the Strait of Hormuz have been put aside. Crude oil prices have avoided the highs from earlier this year because Gulf producers have been moving what they can via alternate routes, the US and Europe have been releasing strategic stocks, and demand has softened in response to high prices. But with US SPR stocks the lowest in 43 years, the ability to for them to provide a buffer is diminishing.
PRODUCTS
So far, October RBOB has come up short of taking out its contract at 3.0417.
NATURAL GAS
October Natural Gas was lower early Thursday after making an attempt at the August high at 2.887 on Wednesday but coming up short. The latest 6-10 and 8-14 day forecasts are warmer than yesterday, with the normal/below normal tendencies in the northeastern quadrant shrinking in the 6-10-day and disappearing altogether in the 8-14-day. Above normal temperature dominate, which should help support some cooling demand, though that is offset by record US production
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.
