Written Commentary
CRUDE OIL
After seeing the latest favorable vaccine and therapeutic news, we suspected crude oil prices would be extending last week’s rally on the upside. Additionally, the crude oil market is deriving lift from a downside breakout in the US dollar, news that India bought 20 million barrels of crude for early delivery next year and from a very sharp gain in Brent crude oil futures overnight.
NATURAL GAS
The natural gas market should benefit modestly from the improvement in overall market psychology from the vaccine front but also from a slight cooling of the US temperature forecast. It would also appear as if demand for gas at US export terminals. Furthermore, as opposed to the petroleum complex, the natural gas market is technically oversold with the November high to low break already $0.85. Short-term tech indicators at extreme; up 14.7% for the week.
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