China Bot US Oil
With the crude oil market not getting a definitive benefit from overnight stories regarding boosted Chinese purchases of US supply and that action likely to help US/Chinese trade relations, it would seem as if the market is not in a particularly strong posture to start the new trading week. Trade expectations call for oil exports to China from the US next month to double as US crude currency adjusted prices are favorable for China to buy from the US and that could kill two birds with one stone (improved trade relations and getting the lowest price).
The natural gas market continues to surprise the trade with the massive range up rally putting the market up to the highest level since early May and in turn sparking conversations that the market has made a major low. With another major delay in an Australian gas plant operation prompting buyers in the area to turn to other sources, a hotter than expected heat wave in the US pushing up demand and evidence that the tropical storm season is in full force have a nearly perfect bull storm has been built.
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