Written Commentary
CRUDE OIL
September Crude Oil was lower early Friday but inside Friday’s range higher. There has been no progress reported on relieving the blockages out of the Persian Gulf or the Red Sea, but some longs may be anxious to book profits ahead of the weekend. There are expectations that OPEC+ will raise its output quotas by another 188,000 barrels per day for September when they meet on August 2, but that will only be felt once the blockages are lifted. Kpler data indicated that only one tanker crossed though the Strait of Hormuz on Thursday, the lowest since May 7.
PRODUCTS
Like crude oil, product prices were both lower early Friday on apparent profit taking following strong rallies this month off the closures of export outlets from the Persian Gulf and the Red Sea. US crude oil, gasoline and distillate stocks remain the tightest they have been for this point in the season in at least six years.
NATURAL GAS
September Natural Gas reached its highest level since June 9 early Friday. Global prices are higher as Qatar supplies continue to be curtailed with the blockage at the Strait of Hormuz, and this could be providing some support to US prices as well. EIA Gas storage for the week ending July 17 was 3,056 bcf, +32 bcf from 3,024 the previous week. This was below the average trade expectation of +35 and within the range of expectations from +19 to +39.
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.
