Written Commentary
CRUDE OIL
Clearly, the crude oil market has shifted from fear of demand destruction due to widespread havoc in the US following the election and has discounted news of additional restrictions on personal interaction in Europe as prices early today are already nearly $5 per barrel above yesterday’s low. In other words, the energy markets are adopting the view of the equity markets that getting beyond the election is more important than any outcome. The gains this morning are made even more impressive by news that Indian September crude oil imports came in 9.8% below year ago levels.
NATURAL GAS
Clearly natural gas prices are vulnerable to a downside extension following yesterday’s reversal and today’s extension of that liquidation. In fact, the natural gas market was likely holding a near historic spec and fund long positioning and with prices into the high yesterday a startlingly $0.48 above the early October lows, the market appears to have been caught in a very bad technical position on the charts.
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