Energy Market Outlook for June 3
CRUDE OIL MARKET FUNDAMENTALS:
Into the overnight high the trade was fully expecting a one month extension of OPEC plus production restraint. However there appears to be fallout within OPEC plus regarding “cheating” on production promises. Apparently Saudi Arabia and Russia are demanding assurances from other smaller producers to respect quotas.
We attribute most of the overnight recovery in gas to classic short covering off the oversold condition. Traders need to be very watchful of any story registering an expansion of electric generation from restart activities and or from warmer weather.
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