Written Commentary
CRUDE OIL
With a slight improvement in global sentiment (from equity market gains and positive virus vaccine/testing news) the fears of rising OPEC plus production and ongoing anemic global energy demand have been pushed to the background.
NATURAL GAS
The significant reversal and sharp range down in November gas yesterday should unnerve the bull camp and embolden the bear camp. Furthermore, a lull in Caribbean/Gulf of Mexico tropical activity and offsetting US above and below normal temperature views should allow for a technical downside follow-through in gas down to the $2.50 level. However, prices are likely to see some bargain hunting buying in the event of a return to $2.40 off the idea that China will likely begin to bottom pick.
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