Energy Markets Lower
CRUDE OIL MARKET FUNDAMENTALS
We see a shift in fundamental and technical signals in the energy market today with a bit of economic disappointment from the Fed yesterday and the charts showing vulnerability early today. While not a surprise US crude oil inventories posted a new record level yesterday and prospects for significant demand improvement were undermined by the Fed’s view that the recovery battle will be a long road.
On one hand, the natural gas charts were significantly damaged again yesterday and a new contract low was forged leaving the bear camp emboldened. On the other hand, the market aggressively rejected that washout and bounced over $0.11 within the session.
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