Written Commentary
CRUDE OIL
At least to start today, the crude oil market appears to be looking beyond several negative macroeconomic demand signals, but also appears to be unconcerned about a hawkish Fed outcome. In fact, news of serious air cargo backups in China (due to quarantine) probably extends threats against Chinese energy demand into the future.
While the overnight action in gasoline is disappointing to the bull camp relative to the upside breakout in crude oil prices overnight, the gasoline market has several bullish fundamental storylines at its disposal.
NATURAL GAS
Natural gas prices have extended this week’s upside breakout overnight and have reached a 2 1/2 year high off support from multiple bullish supply developments. Obviously, the weekly EIA storage report showed a net injection yesterday that was well below trade forecasts, and that increases the chances that the US will have below-average storage at the start of the North American heating season.
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