Written Commentary
CRUDE OIL
In addition to the overbought fundamental and technical condition of the market into this week’s highs the crude oil market should remain under fresh selling pressure because of a noted deterioration in global economic psychology. At the heart of the deterioration in market optimism is unending fear of fresh lockdowns, very dire medical predictions for the US from the US President over the coming month, reports of massive new testing in Beijing and disappointing US vaccination rates.
NATURAL GAS
The charts remain bearish toward natural gas with prices ranging down again overnight and little in the way of support seen until $2.389. Furthermore, with last week’s Baker Hughes gas rig operating count posting a 38-week high and Canadian gas rigs operating reaching a 46-week high, the gas market is presented with fresh bearish supply concerns.
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