Written Commentary
CRUDE OIL
Despite stronger than expected Chinese PMI data overnight, a significant downside breakout in the US dollar and expectations that OPEC plus is discussing extending oil production restraint, prices have forged a 3-day low in the early going. Perhaps the trade is partially undermined as-a-result of a risk off mood in global equities or from countervailing arguments that OPEC plus has some members in favor of gradually expanding production starting in January.
NATURAL GAS
While January natural gas did forge a 3-day low overnight the market soundly rejected that slide and has returned to the vicinity of last week’s highs. The market should see support from a fresh downside breakout in the dollar, especially after reports that US LNG exporters have already loaded a record 81 cargoes this month.
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