Written Commentary
CRUDE OIL
The energy markets are the only major commodity group trading lower this morning and that is partially the result of a short-term overbought condition from last week, but also because of serious ongoing global infection rates. It is also likely that a 3.4% weekly rise in global floating storage has undermined prices.
As indicated in the crude oil coverage today, the ramping up of the US refinery operating rate creates a very significant junction for both gasoline and diesel.
NATURAL GAS
The natural gas market has shown many failed attempts to rally and has basically chopped with in a $0.65 range for nearly 9 months, and therefore it is difficult to respect the upside breakout. On the other hand, the breakout this morning feels significant and late season US cold weather has likely prevent aggressive rebuilding of inventories recently.
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