Written Commentary
CRUDE OIL
Apparently, a series of supportive fundamental developments overnight have helped the July crude oil contract hold near the sharply lower Thursday closing level. Supportive overnight developments include a 21-month high in Brent crude premium to Dubai crude, evacuations of Gulf of Mexico facilities ahead of a storm and reports of rising Russian oil premiums.
NATURAL GAS
While natural gas was unable to forge and sustain a rally off a much smaller than anticipated weekly injection reading, the market did manage to hold up impressively against a big picture broad-based physical commodity market washout. The weekly natural gas storage report showed an injection of only 16 bcf. Total storage stands at 2,427 bcf or 4.9% below the 5-year average.
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