Written Commentary
CRUDE OIL
The crude oil market remains in a bearish track on its charts, with yesterday presenting a 3rd straight day of lower low action and a 4th day of lower highs in place this morning. While we do not see the weekly EIA report as particularly bearish to crude oil prices, (with the gain in crude stocks under market expectations) and the US refinery operating rate jumping by 7.1%, the market this morning is presented with a long list of longer-term bearish fundamental headlines.
With a large range down extension in gasoline yesterday and the added extension down this morning, the charts have turned from slightly bearish to significantly bearish.
NATURAL GAS
On one hand, the natural gas market has stalled what was a very aggressive downward pattern in place since the middle of February (so far this week). On the other hand, attempts to rally have been definitively halted at the $2.60 level which was the bottom of a gap left by the massive opening washout on Monday.
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