Written Commentary
CRUDE OIL
With a fresh 7-day low in the early going today it is clear that fresh demand destruction fears have returned to the forefront. Obviously, a surprise setback in the progression toward a US stimulus package combined with the hard deadline for an exit deal adds to demand destruction fears from macroeconomic perspectives.
NATURAL GAS
The natural gas market forged a distinct upside breakout on Tuesday and would appear to be headed back to a higher trading range bound by $2.80 and $2.99. We are hesitant to suggest that a slight shift to colder weather in the UK, Western Europe and portions of the US is the primary driving force behind yesterday’s upside breakout.
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