Crude Oil Higher Despite Demand
We continue to be surprised in the energy market’s ability to post gains considering concerns for US gasoline demand improvement, less than stellar improvement in unemployment claims and record daily infection counts in several US southwestern states. However the market is supported by news that OPEC plus will “compensate” Iraq for reducing its production as that will help facilitate compliance from the biggest violator.
Cushioning the natural gas market into the last trading session of the week is the presence of steady seasonal increases in US cooling demand in parts of the US this weekend, the short term oversold condition from the recent pattern of contract lows and from news that wholesale gas prices in the UK for this weekend jumped by 5% (indicating demand).
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