Crude Oil Higher
With another upside extension in August crude oil this morning the market moves closer to filling the “panic gap” from the US lockdown. Even more surprising is the fact that crude oil is moving higher this morning following news that China might be set to tap the brakes on imports in the 3rd quarter. Certainly favorable equity market action, positive overnight global PMI data and some hot weather benefits from the US have added to the bull case.
We see the action in the natural gas market yesterday as an interim top with a big range new high for the move reversal and lower close. Certainly the market garnered some technical short covering as a result of an increase in cooling demand in a moderate portion of the US recently. However, that much above normal temperature area has shifted to the extreme northeast of the US with the heat index below normal for the majority of the US out through July 5th.
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