Written Commentary
CRUDE OIL
Market sentiment this morning is showing signs of shifting negative, with some Asian cash deals overnight done at discount pricing, Brent crude price spreads shifting into contango and some longs expected to bank profits this morning rather than risk setbacks from a failure to get stimulus/exit agreements later today. It is also possible that appointments to the Biden team are increasing fears of reduced utilization of fossil fuel from aggressive climate change policies.
NATURAL GAS
In retrospect, the natural gas market burned through a-number-of bullish developments this week without a fresh upside breakout on the charts. Clearly the natural gas market continues to be limited by mild temperatures in the US and Europe, but also because of adequate US gas in storage into the winter months. However, the most significant disappointment for the bull camp this week is the lack of a sustained rally in prices following comments in Asia “that there was hardly any gas” available.
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