Energy Support From Hurricane Delta
In addition to generally positive global macroeconomic psychology the energy markets are drafting support early today from hurricane Delta, the potential for an expansion of the Norway oil-workers strike and from further declines in the US dollar. In fact, hurricane Delta has a projected track nearly identical to the two hurricanes seen last month, with the latest forecast predicting the storm to reach Category-3 status in the coming 12 hours.
The bulls have the edge again today with fundamentals and technical signals favoring the upside. While resistance on the charts may be close-in at $2.7270, it could be very difficult for the market to discount the threat against supply with a tropical storm expected to become a category-3 hurricane, a forecast track directly at the same landfall point as to prior hurricanes and also because of the ongoing strike in Norway.
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