Corrective Price Action in Energies
In addition to ongoing fears of falling energy demand in India, the market is also seeing increased production by Iran and Russia and therefore the bear camp has the initial edge. In fact, a critical support point at $63.08 was violated this morning leaving the market on a back foot early on.
Like the crude oil market, the gasoline market reversed course last week after a new high move last week in a possible sign that longs view prices above $2.10 as expensive.
Despite the loss of upside momentum after a trade above $2.90 last week, the gas market has entered the new week strong. Apparently, the gas market is supported by improved European demand expectations and perhaps from confirmation that the market remained net spec and fund short as of early last week.
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