Written Commentary
CRUDE OIL
With January crude oil prices pulsing up with another breakout and forging a return to levels seen at the exact time of throttle down liquidation from lockdown orders, one could suggest prices are factoring in the passing of the pandemic. However, demand recovery beyond China has been anemic and at some-point soon, the markets will need confirmation of their expectations of improving US demand.
NATURAL GAS
As in a-number-of markets the natural gas market appears to have a distinct difference of opinion of fundamentals developing between short-term and long-term analysis. Clearly, a minuscule withdrawal of supply from storage in this week’s report, rekindles ideas that supply will remain flush into a winter season that is showing signs of being mild.
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