Written Commentary
CRUDE OIL
The bull camp has seen several bullish overnight developments and yet prices have displayed early weakness. In addition to comments from a major oil player in Russia that the OPEC plus deal to restrain production is likely to become a fixture and given a decline in crude oil floating storage of 13% last week one might have expected prices to have rallied.
NATURAL GAS
In retrospect, it would appear as if the rally in natural gas has run its course. In fact, while the cold weather in Europe is expected to continue for two weeks, the market probably factored that into prices last week, and the US has seen temperatures warm up for all areas except for the Southwest and Northwest. The Baker Hughes gas drilling rig count was unchanged at 94 rigs last week while Canadian gas rigs operating fell by one to just 38 rigs which is the lowest reading since October of last year.
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