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Bullish Buzz Remains

CRUDE OIL

The energy markets virtually exploded yesterday off hopeful demand views. In addition to signs of inflation this week from a very long list of countries, the bull camp is also emboldened by favorable Chinese economic data and from the highest weekly US implied gasoline demand reading since August of 2020. Clearly, the EIA weekly report was very bullish to the product markets, with nearly every statistic within the report favoring the bull camp.

NATURAL GAS

Apparently this week’s rally was primarily fueled by late-season cold in the eastern half of the US, but despite expectations that the cold will stretch to 15 days, prices are falling back today. In our opinion, the trade is selling the “rumor” of a bearish EIA inventory report this morning and we would not rule out a slide to $2.60 if inflows top 67 bcf.

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