Energy Complex Outlook
While some will suggest that the bull case is becoming stale (lower production and rising demand), seeing word that Saudi Arabia and Russia are negotiating the potential for an extension of the production cut agreement, is made even more important by what has so far been successful global economic restart efforts. In fact, with news that OPEC crude oil output in May declined by 5.8 million barrels per day, seasonal demand for gasoline rising in the US and with a growing amount of global workers beginning to travel back to work, that should mean the world oil market will continue to work off excess supply.
While the natural gas market has displayed some rejection of the latest washout down move, the charts remain bearish and there appears to be little in the way of bullish fundamentals to prevent the market from working even lower.
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