Energy Bulls in Control
While the July crude oil contract has not forged a new high for the move yet, overnight fundamental developments favor the bull camp. In addition to the potential for a Norwegian oil-drillers strike, the market is supported by evidence of surging US road traffic, with a private service forecasting last week’s US traffic reached an impressive 17.2 billion miles. It should be noted that the increase in US miles driven was compared to a normal year (2019) and not the pandemic stricken 2020.
As indicated in crude oil coverage today, we see the fundamentals in gasoline turning slightly less bullish and possibly bearish unless driving demand in the US begins to show signs of expanding definitively.
In a development that is not surprising, China was forecast to become the world’s largest LNG “buyer” before the end of June. Also not surprising is the fact that China has already the world’s largest LNG “consumer” with demand at 81.2 million tonnes compared to only 75.2 million tons in Japan.
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