Written Commentary
CRUDE OIL
With another new high for the move and very upbeat sentiment flowing from equities the bull camp enters the last trading session of the week with an edge. However, some analysts and traders think the crude oil market will see a correction in the coming weeks from the return of OPEC+ supply. On the other hand, the markets do not appear to be overly concerned about the surge in US daily infections (55,123 on Wednesday) and the markets are also not concerned about periodic strength in the dollar.
Like the crude oil market, the gasoline market remains on fire and has fully regained the historic washout over the prior 2 weeks. Despite expectations of a build in EIA gasoline inventories this week, gasoline stocks declined while the implied demand reading ticked up slightly.
NATURAL GAS
With another higher high for the move and a contract high, the September natural gas contract has seemingly settled into an uptrend most likely from a sustained period of high US temperatures. Seeing the press highlight the noted strength in the natural gas market with headlines touting prices at the highest level since December 2018, has probably fostered spec buying.
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