Written Commentary
CRUDE OIL
With this week’s initial rally forged on declining volume and declining open interest, macro-economic sentiment shifting down, a rising Dollar, surging US infections and a lack of support for prices from the EIA report prices should give ground today. However, weekly EIA crude oil stocks posted only a marginal build, the US refinery operating rate increased by almost 2% (that should increase the “call” on physical US crude supplies) and there are reports that China continues to increase purchases over the last several weeks.
NATURAL GAS
The natural gas market has failed at consolidation support on the charts early and a liquidation wave in underway again. Unfortunately for the bull camp, the weekly storage report range of estimates has a noted injection on one end of the range after seeing two straight weeks of injections into the second half of November and that provides selling fears ahead of today’s storage report.
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