Written Commentary
CRUDE OIL
With a significant downside extension overnight, it is clear that crude oil market sentiment has embraced fresh energy demand fears. The primary force behind deteriorating global energy demand expectations is the recent roll back of activity rules in portions of Europe but the deterioration of demand is also a function of a pattern of soft US scheduled data.
NATURAL GAS
We were surprised with the May natural gas upside breakout yesterday, as the US temperature forecast remain bearish, but we are even more impressed with the markets capacity to hold those gains despite aggressive declines in crude oil prices this morning. However, a very major overnight bullish development was seen with reports that the EU might designate gas plants with a green finance label.
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