Written Commentary
CRUDE OIL
While macro-economic conditions favor the bull camp again today off residual hope of a recovery in energy demand from $2,000 checks from the US government, that news is offset by the first decline in weekly US gasoline demand since the beginning of December. Certainly, the energy markets have managed to discount the unending surge in US infections, but until that threat is moderated, we think getting long February crude oil above $48.00 is unattractive.
NATURAL GAS
In addition to the extreme short term oversold condition from the charts, the market this morning has been presented with reports that PetroChina intends to import record LNG supply because of a surge in cold temperatures. Furthermore, the bull camp has also been presented with another decline in lower 48 States gas production.
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