Written Commentary
CRUDE OIL
Energy prices have managed to extend on the upside again this morning off ongoing projections of improving summer demand in the wake of reopening of large swaths of the global economy. It is also likely that prices this morning are being lifted by yesterday’s API data that showed crude oil stocks decline by a massive 7.7 million barrels in the week ended April 30th.
As indicated in the crude oil coverage this morning, the markets are pushing prices higher off the loosening of activity restrictions and we suspect that very strong April truck and US vehicle sales highlight a very positive gasoline demand environment for the coming summer.
NATURAL GAS
From a technical perspective, the June natural gas test and rejection of the $3.00 level on the charts should discourage some would be buyers. However, the market is seeing support from expectations of above normal heating degree days into midmonth in the US and possibly from opening-up fund and inflation buying.
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