Written Commentary
Coffee Futures Extend Selloff
October 27, 2026
CRUDE OIL
December Crude Oil was trading back and forth from Monday’s close early Tuesday and inside Friday’s range-up action. Monday’s meeting in Tehran between representatives from Saudi Arabia, Turkey and Pakistan with representatives from Iran were the first high-level contact between the two groups since the war began and is offering a glimmer of hope towards détente and is helping crude oil avoid a retest of Friday’s highs. A Pakistani official added that they had presented a to the US and Iran that would offer something for both. This comes amidst President Trump saying on Friday that the US may strike Iran again and Iranian security officials telling Reuters that they had drawn up plans to attack Gulf undersea cables if the US and Israel attack again. For the petroleum stocks reports, the early Reuters poll has an average trade expectation calling for US crude oil stocks to be +500,000 barrels for the week ending October 23. Gasoline stocks are expected to be -1.3 million barrels and distillates -900,000.
PRODUCTS
Product prices are holding in the vicinity of their recent highs.
NATURAL GAS
December Natural Gas was higher early Tuesday after falling to its lowest level since August 2021 on Monday, with the nearby contract falling to its lowest level since April. After nine straight sessions of lower closes and a 17% decline, the market may be due for a recovery. However, US production is coming back after a decline early in the month, and US weather is still milder than normal. The one supportive factor could be that US supply is running well below a year ago, even if it is slightly above average for this time of year, which leaves little cushion if the temps turn below normal or even “normal.”
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