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China Demand Concern Weighs on Crude


The crude oil complex was unable to build onto last Thursday’s recovery move, finishing last week on a downbeat note and starting this week on the defensive with massive early losses. With global demand concerns weighing on sentiment, crude oil and the products may have difficulty finding their footing unless there is significant improvement in risk sentiment.

RBOB and ULSD have followed through with Friday’s pullbacks by posting new 2 1/2-week lows this morning. An uptick in implied gasoline demand last week to its second highest reading of the year indicates that North American driving has continued to be strong despite the spreading Delta COVID variant.


Natural gas prices continue to see coiling action near multi-year highs, and they could find fresh support from developments over the weekend. The September contract finished last week with a gain of $0.226, for the third positive week in the past four.

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