CRUDE OIL
In looking back to this week’s action, it is difficult to determine the primary force behind the massive washout in energy futures prices, with a number of bearish issues surfacing throughout the week. Obviously, the major range down failure yesterday was fueled in part by classic stop loss selling, as key chart support points were taken out on several occasions.
While RBOB has bounced from yesterday’s spike low, a number of bearish fundamentals should leave the bear camp confident.
NATURAL GAS
Just when the bull camp thought it would not get worse, this week’s inventory-draw of only 11 BCF rekindled bearish confidence. By some perspectives, the very small storage-draw this week signals an early end to the withdrawal season, which in turn will discourage would be bottom picking.
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