Written Commentary
CRUDE OIL
July Crude Oil was near unchanged early Wednesday and was hovering around Tuesday’s high. The market has drawn support this week after the latest attempts at negotiating an end to the Iran war went nowhere. Perhaps a new attempt at negotiation will come out of the meeting between President Trump is Chinese President Xi this week. The are reports of a small number of crude carriers and LNG tankers making it through the Strait of Hormuz, which appear to be as a result of some sort of accommodation on the part of shippers and exporting nations with Iran. A Chinese supertanker carrying 2 million barrels of Iraqi crude was reported to be attempting to sail through the strait today based on Kpler ship-tracking data. This would be the third known passage by a Chinese oil tanker through the strait since the start of the war. There are also reports that Iran has cut deals with Iraq and Pakistan to ship oil and LNG from the Gulf.
PRODUCTS
Like crude oil, product prices are hovering near yesterday’s highs but not making new ground early Wednesday.
NATURAL GAS
July Natural Gas was higher mixed Wednesday after rejecting the rally from earlier in the week and failing to take out a key resistance level. The 6-10 and 8-14 day forecast maps show above normal temperatures across most of the lower 48 states but the extreme heat conditions, when they appear, are fleeting, and this seems to limit the possibility of an early season surge in electricity demand for cooling.
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.
