Written Commentary
CRUDE OIL
February Crude Oil is pressing against last week’s lows early Monday, as the market weighed the interruptions of Venezuelan oil exports against what is expected to be an otherwise ample global supply as well as a slight improvement in the chance of peace in Ukraine over the weekend. Ukrainian President Volodymyr Zelenskiy offered to drop his country’s aspiration to join NATO in talks with US envoys in Berlin on Sunday, which shows some willingness to negotiate. The issue of Russia’s demand to not only keep Ukrainian land they already occupy but also a take more as well as other security agreements with the west remain sticking points. Negotiations are set to continue.
NATURAL GAS
February Natural Gas extended last week’s selloff slightly early Monday and was in the vicinity of the October low. Warmer weather is coming later this week to the US, with mid-week temperatures rising to the 60s and lower to a few middle 70s in the central and southern Plains, according to World Weather Inc. Highs in the Midwest will reach the 30s and 40s on Wednesday and the 40s and 50s in the south Thursday. Things may cool off a bit in the northern Plains and northern and eastern Midwest Thursday and Friday, but warmer than usual conditions will return after that.
PRODUCTS
The product markets were lower early Monday, in line with the direction in crude oil.
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