Written Commentary
CRUDE OIL
While energy prices are short-term overbought and held back by news of increased Saudi Arabian crude oil export figures from July, the overall bias in prices remains up. In addition to ongoing restrained supply flows in the US Gulf region Bloomberg overnight indicated that total crude oil stocks tracked by them fell by 27 million barrels in the week ending September 10th with crude oil stocks on land declining by 19.4 million barrels and floating crude stocks declining by 7.6 million barrels.
Like the crude oil market the gasoline market is clearly short-term overbought with yesterday’s 6 cent range higher move. However, given the sharp range up extension in RBOB prices yesterday, the market is vying for leadership within the energy complex.
NATURAL GAS
While tightness does not appear to have dissipated, prices might have become massively overdone with yesterday’s spike up rally and closing retrenchment. Furthermore, it is possible that today’s US storage report will post another larger than expected weekly injection and in turn spark long profit taking.
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