Written Commentary
CRUDE OIL
The crude oil market on Tuesday forged a 2-day low and then recovered aggressively with a bounce in crude oil prices from yesterday’s low of $1.19. In fact, the crude oil market maintains a very uniform uptrend channel which began in late August.
While the gasoline market managed to rebound from initial lows yesterday, the charts were damaged, and a critical pivot point at $2.40 failed to hold this morning. In another negative developing trend for the product markets, global refiners have ratcheted up activity given favorable crack spread price signals.
NATURAL GAS
While the natural gas market ranged down sharply with a new low for the move yesterday, it rejected that decline and closed $0.25 above the low of the day! The market might be drafting support from a slight squabble developing between Europe and Russia, with Russia indicating Europe will not be able to get enough gas without the Nord Stream 2 pipeline.
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