Decline in API Crude Stocks
We thought the energy complex was vulnerable to fundamental and technical corrective action earlier this week. However, with the API yesterday afternoon posting a surprise 4.7-million-barrel decline in stocks, Indian June crude oil imports up 16% above year over year levels and ARA crude oil storage falling by 2.4% on the week, the bull camp has regained control.
While we are surprised with the gasoline market’s capacity to make a higher high yesterday (in the face of broad-based physical commodity market weakness and generally lower crude oil prices) demand hopes are apparently difficult to unseat.
Apparently, the natural gas trade was aware that US gas exports in the first half of 2021 jumped significantly, as prices have continued to fall away from this week’s spike high. However, cooler weather throughout the US has entered the forecast for the coming weekend and recent cooling degree days have proven to be closer to normal than the trade was expecting into the Monday high.
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