Written Commentary
CRUDE OIL
The initial outlook for crude oil prices is negative from vulnerable charts, but a-number-of bullish fundamentals should help the market respect support at $64.22. In fact, reports that China has resumed buying for storage, the lowest US infection count since October 5th, surging high-frequency activity data in the US, the strongest TSA checkpoint numbers of the entire pandemic and fresh highs in US equities provides a-number-of positive demand themes today.
While the gasoline market did forge another new high yesterday, the market recoiled sharply from that high as if buyers were exhausted or simply put off by pricing above $2.15.
NATURAL GAS
With a gap-down and large range-down move to start the week, bargain-hunting buyers are unlikely to step in quickly. Furthermore, with this week’s Reuters poll pegging the decline in natural gas working inventories this week to be small at -27 BCF to -18 BCF, the end of the North American heating season is at hand.
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