Corrective Action as Supply Edges Out Demand
On one hand, the energy market should see fresh demand orientated buying from a “risk on” environment emanating from strength in global equities early today. On the other hand, the market is sensing increased output from Iran, when the Iranian government negotiates with the US for a loosening of sanctions.
While the gasoline market retains a bullish chart set up, with a uniform uptrend “channel” pattern (higher lows and higher highs) but trading volume has remained flat, thereby dampening the dominance of the bull camp.
The natural gas market saw fresh chart damage overnight, with residual pressure remaining in place from last week’s storage report. In fact, it would appear as if the injection season has begun with warm temperatures in the Midwest and East Coast putting extra weight on market pricing to start the new week.
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