Energy Markets Lower
While internal market negatives continue to mount for crude oil, the bear camp should take note of overnight headlines that could signal a slight moderation of US infection rates and that could result in a sudden revival of energy demand hopes (if proven true). However Russia has indicated they will increase exports beginning next week, spread pricing in the Brent crude oil contract is bearish and the markets have seen a fresh industry prediction that global oil demand will remain “flat” because of the ongoing virus surge.
With the fresh technical damage on the gas chart yesterday, the net spec and fund long likely reaching the highest level since February 2019, and a patently bearish US weather outlook into mid-August, the bear camp should be poised to exert control.
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