Written Commentary
CRUDE OIL
June Crude Oil’s lower close on Thursday after reaching new contract highs indicates the market may have gotten ahead of itself despite an ominous turn in the Iran war. The market traded either side of unchanged early Friday and was holding near the low end of Thursday’s range. Divergence with technical indicators and the lower open interest than during the previous highs suggest a loss of momentum on the rally. There appeared to be no changes in the Iran was situation overnight, and the reports from earlier this week that the Trump administration was considering new a assault have yet to be verified. However, during the course of this wary, big events have tended to happened on the weekend, be it new attacks or breakthroughs on peace negotiations, which suggests that the yesterday’s setback in prices should be greeted with caution.
PRODUCTS
June RBOB extended its rally slightly early Friday to another new contract high, while ULSD, like crude oil, respected Thursday’s high. The EIA report this week showed US gasoline and distillate stocks were the lowest they have been for this point in the season in at least six years.
NATURAL GAS
June Natural Gas was higher early Friday after a reversal higher on Thursday from a new low for the move. The weekly EIA gas storage on Thursday showed a net injection last week, but it was within the range of expectations and slightly below the average, and this may have been enough to stem the selling for a while.
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.
