Written Commentary
NATURAL GAS
News that Russian Gazprom is seeing its daily flow of gas to China running 20% above its contracted levels and overnight Chinese warnings of winter gas tightness, that strengthening Chinese gas demand expectations are front and center again today. Adding into the bullish Chinese winter tightness news is the fact that below normal temperatures continue to expand to an even larger portion of the US.
CRUDE OIL
Crude oil prices appear to be embracing big picture outside market forces and discounting internal market forces with prices seemingly “stuck” near the last 40 days consolidation highs. Certainly, the crude oil market has an improved energy demand outlook, mostly because of developments from the US stimulus front, but also because of favorable Chinese data and renewed weakness in the US dollar.
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