Written Commentary
CRUDE OIL
It would appear as if the overall macro-economic condition is deteriorating from the euphoria seen earlier this week and we suspect that sentiment will deteriorate further today off disappointing US payrolls and fears that weekend infections could result in shutdown orders. Furthermore, we would suggest that the fundamental foundation of the energy market has not changed dramatically over the last week, and that should concern the bull camp following this week’s $5.00 rally. A potential major bearish theme is seemingly returning, with the world’s largest oil storage company indicating it is approaching capacity in Europe the Middle East and Asian facilities as the lack of a home for floating supply, could make declines in futures nonsensical again.
NATURAL GAS
Technically, the charts in natural gas extended the washout overnight and there would not appear to be close-in support from the charts. Furthermore, the US temperature forecast continues to moderate the below normal readings from earlier in the week. Also tropical storm ETA is unlikely to directly impact US/Mexican Gulf operations until the middle of next week and the storm might avoid a direct hit on production unless a significant left turn (west/northwest takes place late in the day on November 9th.
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