Written Commentary
CRUDE OIL
In retrospect, the crude oil market this week appears to be supported as a result of ideas that Iran’s return to the world oil market will be slower than was recently expected. While the July crude oil contract failed to hold its initial pulse up breakout yesterday, the market ultimately spent the-majority-of the Tuesday trade in positive ground and would appear to be capable of more gains today.
The charts in the gasoline market appear to be more bullish than in the crude oil market, with RBOB prices spending the entire overnight trade in positive ground and within proximity to yesterday’s high of $2.2039.
NATURAL GAS
With a huge range up move and a large range of $0.14 it would appear as if natural gas has come alive and is receiving fresh speculative buying interest. Obviously, increased cooling demand in both the US and Europe recently has provided the basis for the rally, but it is also possible that the natural gas market is beginning to see some inflation hedge fund buying with the natural gas market one of the cheapest commodities on the board right now.
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