Written Commentary
CRUDE OIL
The rally in the energy complex yesterday was surprising considering the bearish take-away from the weekly EIA inventory report. On the other hand, counter to initial predictions yesterday, it is possible that the blockage of the Suez Canal could take weeks to remove. In addition to the surprise jump in crude oil inventories, the market was also presented with a US production increase of 100,000 barrels per day which is a 9-week high.
Surprisingly, the gasoline market showed a very definitive rejection of the lower opening yesterday with prices at times managing a compacted gain of 11.5 cents.
NATURAL GAS
As in the copper market, our view toward the natural gas market is for further sideways consolidation chop with a trading range defined as $2.63 and $2.49. While the natural gas market showed almost no reaction to a story from Europe indicating the EU might give gas fired plants a green label (with respect to financing) that development did not receive much coverage by the press or attention from the marketplace.
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