Written Commentary
CRUDE OIL
On one hand, the crude oil market is holding up impressively in the face of the 180-degree shift from wildly upbeat economic optimism yesterday. However, in the event of a wholesale liquidation in equities, from an upside breakout in US rates, it could be difficult for the April crude oil market to avoid a test of $65.00.
Seeing April RBOB forge an upside breakout this morning in the face of a definitively negative shift in global market psychology could be a testament to the resolve of the bull camp.
NATURAL GAS
In retrospect, the natural gas market was one of the very few physical commodity markets to fail to rally off a very significant broad-based reflation in commodities this week. In fact, significant gains in petroleum prices, weakness in the dollar and evidence that US gas inventories are 6.8% below 5-year average storage levels, all failed to ignite fresh buying.
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