Written Commentary
CRUDE OIL
Obviously, the energy markets were not concerned that demand for energies will take some time to recover as prices exploded and returned to the highest levels since Oct 21st to start the trading week. Certainly, resurrecting energy demand in travel and leisure will take a long time but deflationary hedge selling (as was seen aggressively on the morning of Nov 2nd) should now be replaced with speculative buying.
NATURAL GAS
While the natural gas market has not shown positive sensitivity to favorable big picture macroeconomic events recently, we can’t help but think prices will be supported somewhat by the vaccine news and by the chart support level of $3.00. Furthermore, there is potential support for the market today from a noted change in the forecast track of tropical storm Eta as it is expected to make a 90 degree turn toward the west. Natural gas should also get support from the composition of the US temperature forecast with much above normal temperatures seen in the southern states and below normal temperatures seen in the northwest as that will boost cooling and heating demand for natural gas.
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