Written Commentary
CRUDE OIL
With energy demand signals mixed, and the markets already factoring in some measure of demand improvement, today’s US scheduled report wave could be-seen-as a very important signal for the near-term trend in crude oil prices. With OPEC plus panel discussions lowering oil demand growth forecast for the 2nd half of the year, that certainly provides fundamental resistance for prices.
While both energy products finished Tuesday in negative territory, RBOB outperformed ULSD and remains the strongest member of the energy complex as it has found some measure of support from the prospects for increased US summer driving.
NATURAL GAS
While they are far below their February highs, natural gas prices are still on-track for a positive quarterly result but will need to see some positive supply/demand developments to avoid further downside price action. May natural gas fell back from a new 2 1/2 week high and posted a mild loss for Tuesday’s trading session.
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