Bulls Maintain Control in Crude
The bull camp continues to exert surprising control over the crude oil market with high to low gains from last week’s lows now approaching $9.00. Obviously, the decision of OPEC+ to hold output steady for another month caught the markets leaning in the wrong direction last week. On the other hand, ongoing attacks on Saudi Arabia (drones and Missiles) is a fresh bullish impact on prices to start the new week.
Like the crude oil market, the unleaded market is virtually on fire with a 2-day high to low rally late last week of nearly $0.17. In our opinion, the market is justified in its sharp upward extension, as both supply and demand forces favor the bull camp.
The natural gas market remains vulnerable on its charts and is likely to remain under pressure despite a cooler US forecast, signs that China is ramping up gas imports in-an-attempt to cut pollution. In fact, Chinese gas imports in January and February jumped by 17% and imports for all of 2020 ended at a fresh record, with imports rising above 100 million tons for the first time ever.
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