Written Commentary
CRUDE OIL
Given significant declines in US equities, very negative infection news, an overbought technical condition from yesterday’s rally and the API posting a much larger than expected jump in crude oil inventories the bear camp a long list of bearish forces. Clearly, demand fears hovering over the market for the past 2 weeks have now translated into “demand destruction fears” again and it is highly likely that additional US lock down orders will at least throw December crude oil down to the early October low of $36.93.
NATURAL GAS
While the natural gas market could see some support from news from Gulf of Mexico regulators yesterday that up to 55% of US gas production in the region was idled and the amount of gas off-line was reportedly 1.5 billion cubic feet per day, supply issues look to be overshadowed by demand fears. Furthermore, the US weather forecast out to November 10th has shifted bearish with the entire US seeing normal or above normal temps.
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