Written Commentary
CRUDE OIL
March Crude Oil traded in a wide range early Friday but stayed inside Thursday’s even wider range. The market continues to be supported by the potential for a US strike on Iran, but President Trump’s suggestion that he was open to dialogue with Iran over its nuclear program may have eased concerns a bit.
PRODUCTS
RBOB prices were on the defensive early Friday but ULSD found support from the persistent cold weather that has boosted heating and power demand. The southern US is expected to experience more unusually cold weather this weekend, this time extending all the way down into central/south Florida, and 6-8 inches of snow could fall in North Carolina and Virginia.
NATURAL GAS
March Natural Gas was higher early Friday, as persistent cold in the eastern half of the US promised to tighten gas supply in the coming weeks. Yesterday’s EIA gas storage it showed a smaller than expected withdrawal last week, but the market quickly discounted this information in light of the drop in production and increase in demand this week due to strong demand and interruptions in output this week. Another very cold event is expected this weekend though not as bad as last weekend.
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