Written Commentary
CRUDE OIL
While the gains in the February crude oil market this morning are not substantial, the market has taken out yesterday’s highs and we now have a 3-day pattern of higher lows in place. Adding into the modest upward tilt is a downside breakout in the dollar and a surprise larger than expected decline in API crude oil stocks.
NATURAL GAS
All things considered, the action in the natural gas market yesterday was very impressive, as North America and European weather remains bearish and yet the market forged a sharp recovery of $0.22 from this week’s initial low. However, position squaring by shorts ahead of January contract expiration and the prospect of an Arctic cold blast in China and Russia might have inspired some fresh buying.
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