Written Commentary
CRUDE OIL
While the crude oil market managed to reject damage on its charts at the end of last week, we think the bull camp is escaping liquidation because of unrelenting strength in equities. In fact we continue to see a negative shift in the fundamental condition with demand fears creeping back into the equation off the ongoing spread-surge of infections throughout the world. Over the weekend the World Health Organization reported another record daily increase in coronavirus infections of 230,000. Fortunately for the bull camp, global equity markets (particularly the Chinese market) continue to show very positive leadership which in turn is helping to support global economic psychology.
NATURAL GAS
We leave the edge with the bear camp in the natural gas market to start the new trading week, as statistics on US gas demand from electric generation have failed to spike on a heat wave in the US. In fact Europe is expecting cooler temperatures ahead and the much above normal US temperature forecast area has narrowed slightly out to July 26th. On the other hand the US forecast has removed the normal/below normal pocket seen in the northwest and has seen an expansion of the modestly above normal temperature area.
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