Written Commentary
CRUDE OIL
In addition to a noted pattern of improving macroeconomic optimism (which boosts energy demand expectations) the energy markets are also receiving lift this morning from a weaker dollar, news that China continues to soak up Iranian oil, strengthening crude spreads, improving US refinery margins (which should increase demand for crude oil), the markets are also seeing evidence of increased US fuel demand.
A bullish shift in sentiment toward RBOB has taken place mostly because of definitive improvement in global sentiment but also because US gasoline stocks reached a 15-week low in the EIA report this week.
NATURAL GAS
With a 40-day low rejected aggressively yesterday and news that US electricity output last week increased by 1.5% versus year ago levels, end of pandemic type optimism extending and a falling Dollar (which makes US LNG pricing to China more attractive) the bull camp has major assistance from the headlines.
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