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Crude Market Lower


Given deterioration of the macroeconomic condition from escalating fears of infection counts in several US states, the crude oil market is justified in showing some minor corrective action. However, in a surprising development, the positioning report in crude oil last week showed a reduction of the net spec and fund long by 26,379 contracts which suggest the market retains buying fuel going forward.


We continue to see the current bounce in natural gas as a technical reaction, as near term supply and demand fundamentals continue to be bearish. While the US inventories as a percentage of the 5 year average have contracted for 5 straight weeks, the surplus to the 5 year average remains substantial at a 16.9% surplus.

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.

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