Written Commentary
CRUDE OIL
December Crude Oil was lower early Monday but inside Friday’s contract-high range. The fact that the market failed to rally off news that Ukraine struck an oil facilities in St. Petersburg, Russia over the weekend may indicate bullish exhaustion. News that President Trump signed an executive order on Friday waiving sanctions and tariffs on Russia that were supposed to go into effect under the Graham Act may have given market bulls some pause for thought as well. Egypt said it was ready to provide Saudi Arabia with support against the Houthis, which is viewed by some as a potential escalation event in the Iran war. Official data from China showed the oil throughput rate at refineries in September rose for a third straight month. Oil imports were down 21.5% year-
NATURAL GAS
December Natural Gas fell to its lowest level since October 5 early Monday as mild weather in the US countered the trend towards lower production this month. LSEG said average gas output in the US Lower 48 states has fallen to 110.8 bcfd this month after record highs of 113.3 bcfd in August and September. LNG flows are down as well, but only marginally relative to the slowdown in production. Average gas flows to the nine major US LNG export plants are running around 17.6 bcfd so far in October, down from 17.9 bcfd in September. At 3.567 trillion cubic feet on October 9, EIA storage is at its lowest level for this point in the season since 2022. The weather forecasts continue to show generally mild conditions that suggest a slow start to seasonal heating demand.
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.
