Energies Higher Despite Demand Threats
Clearly the energy markets retain the capacity to put a positive spin on current events as prices forged yet another wave of higher highs early today in the face of negative economic and political headlines. Apparently big picture macroeconomic headwinds from fresh Chinese activity restrictions, a focus on impeachment instead of stimulus in Washington and ongoing subpar US vaccination rates are of little concern to the bull camp.
Following last week’s reversal, ongoing Arctic cold in Asia pushing prices to record regional levels and spillover support from Petroleum prices, the definitive upside extension this morning has fundamental justification. Clearly the markets are rife with speculation that a severe polar vortex will serve to tighten inventories and reduce confidence that the Northern hemisphere winter will not be cold enough to cause shortages.
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