Written Commentary
Source of both tables: Bloomberg
Market Update
- Late session yesterday saw the market drop for a change, with the market taking a breather from the relentless rise seen over the past few weeks.
- Underlying themes remain the same, with rising Nat gas and coal prices spilling into the oil sector as a result of supply issues. Russia choosing not to send more natural gas supplies to Europe whilst OPEC+ nations struggling to produce target supplies set at the beginning of the month
- Dollar weakness allowing more investment into the sector also adding fuel to the fire. Though this may be short lived with the likelihood of interest rate rises stateside in the near future, as inflationary pressures feed into the economy, stalling the economic recovery from the pandemic
- Crack spreads increasing giving refiners much needed relief after the previous 18 months.
- Shale production in the U.S. also reaching close to pre pandemic levels.
Oil Data Release
API
Crude Exp +1.4 Prev +5.2
Distillates Exp -0.9 Prev -2.7
Gasoline Exp -0.5 Prev -4.6
Macro Data Release
- Housing Starts Exp 1.6 PRev 1.6
Contact the ADMISI Energy Desk
Marco Saggese, Sharon Mitchell, Tony Scuderi
Phone: +44 (0)20 7716 8550 Email: energy.desk@admisi.com
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Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2024 ADM Investor Services International Limited.
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