Written Commentary
CRUDE OIL
The drumbeat of new highs extends into another trading session despite ongoing signs that demand recovery continues to be pushed further into the future. However, the bull camp received additional bullish fuel from a surprisingly large decline of API crude inventories of 5.8 million barrels for the week ending January 8th.
NATURAL GAS
While natural gas prices have a positive near-term demand outlook, a technical reversal from an upside breakout on Tuesday probably puts some would-be buyers on the sidelines. However, Goldman Sachs overnight forecasted a “perfect storm” for the global gas market ahead with a cold start to the winter in Asia, potential shipping delays and an emerging pattern of strong Asian cyclical demand.
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