Rising Demand Fears in Energies
While crude oil prices benefited from the improvement in overall market psychology earlier this week, the hard reversal of equity prices could rekindle significant energy demand fears again and expose prices to a slide below this week’s low down at $38.87. In fact, the ongoing rally in the dollar is likely set to discourage some international buyers of US WTI crude and that could bring about additional bearish demand headlines.
The natural gas market has leapt higher this week, and has managed the gains in the face of significant declines in equities, a lack of any significant tropical wave threats and against further chatter that China is likely slowing its purchases of a number of industrial inputs.
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