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Demand Hopes Return

CRUDE OIL

With at least 2 anecdotal signs of improving energy demand conditions overnight the upside breakout in crude oil this morning is justified. In addition to very strong US vehicle sales figures, the markets are also taking note of spreading “opening up” in both the US and Europe.

Like the crude oil market, the gasoline market also forged a quasi-double bottom yesterday at $2.0554 and reportedly saw bargain-hunting buying at that level off ongoing expectations for improving global fuel demand.

NATURAL GAS

We are surprised that the natural gas market yesterday was able to respect $2.90 as a Bloomberg estimate pegged US LNG export terminals to have leveled out exports over the past 5 days and that has been a major component of the bull case recently.

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