Written Commentary
CRUDE OIL
While the crude oil market was unable to initially sustain the range up action from the prior session, the market this morning was able to return to the vicinity of this week’s high. In other words, the market has clearly shown the capacity to hold up rather impressively in the face of patently bearish weekly API and EIA crude oil inventory data. Obviously, resurgent threats to the global economy from the virus spread and geopolitical fighting between the US and China has rekindled energy demand fears again.
NATURAL GAS
In another surprising reaction, the natural gas contract posted a 3-day high overnight and has managed to return to the vicinity of this week’s highs in the face of a noted tempering of hot weather in the US forecast. In fact, the weather forecast out to August 5th shows “no” significantly above normal temperature zones with the brunt of the country seeing slightly below normal temperatures. Perhaps the natural gas market is being supported by a threat of a hurricane developing in the southern Caribbean this weekend.
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