Written Commentary
CRUDE OIL
Obviously, big picture economic issues are the primary force driving prices down this morning as yesterday’s EIA inventory data on crude oil was supportive. In fact, the action in the crude oil market yesterday was very disappointing to the bull camp as a much larger than expected decline in US crude oil inventories failed to inspire the bull camp at all.
The gasoline market was the only market to see EIA stocks rise on the week and while the increase was very modest, the annual deficit of gasoline inventories narrowed from 19.6 million barrels last week to only 15 million barrels this week.
NATURAL GAS
We continue to see the path of least resistance pointing down in October natural gas with the charts freshly damaged again overnight and temperature forecasts for Europe and the US non-threatening. This week’s Reuters poll pegged the EIA storage report to show an injection of 31 bcf and that figure could be easily surpassed on the upside as was seen last week.
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