Written Commentary
CRUDE OIL
February Crude Oil has fallen to its lowest level since November 25 early Thursday despite an announcement on Wednesday that the US had seized a Venezuelan tanker. That announcement initially lent support, but then it faded. On the bearish side is what seems to be a movement towards a peace deal in Ukraine, at least from US and Russian perspectives. Russian Foreign Minister Sergei Lavrov said on Thursday that a visit to Moscow this month by US envoy Steve Witkoff had resolved misunderstandings between the two countries.
NATURAL GAS
The stunning reversal lower in natural gas prices has continued into today, as the medium-range forecast for the US continues to get milder. The latest 6-10- and 8-14-day forecast show a much warmer trend across the lower 48 states, with above normal temperatures covering most of the nation from coast to coast. In the 8-14-day, the only areas below normal are the far northern Great Plains and northern New England.
PRODUCTS
The product markets are both lower this morning on the bearish turn in crude oil. Yesterday’s EIA petroleum stocks report showed US gasoline stocks were +6.4 million barrels for the week ending December 5 versus +2.8 million expected and distillate stocks +2.5 million barrels vs +1.9 million expected.
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.
