Written Commentary
CRUDE OIL
The bull camp must be commended as prices this week have stood up aggressively to obvious growing demand destruction conditions. In fact the market has also stood up to news that the US Federal Reserve may have seen its ability to support the US economy reduced by a “pull back” of stimulus funds offered through the CARES package. Overnight supply side news was mixed with reports of reduced Nigerian cargoes for January offset by signs of expanding Libyan exports.
NATURAL GAS
Given a lack of threatening tropical storm activity, significantly above normal temperature forecasts out into the first week of December for a large part of the US, a very discouraging weekly injection result yesterday and a recent very large spec and fund long it is difficult to argue against more downside action. In fact, reports overnight that a major Russian gas company saw its shipments to China in October and November come in stronger than expected is bullish for global demand but a little bearish for US demand.
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