Energy Markets Mixed
Despite ongoing concerns of tripping up energy demand from the surge in virus infections, the crude oil market would appear to retain a bullish posture. In fact the market appears to be drafting support from a return to a backwardation in Brent crude oil but that news is offset by reports that large oil related ETF’s saw the biggest liquidation yesterday since 2008.
About the most positive things that can be said about the natural gas market is that the latest new contract low was only minimally below the prior contract low and that prices have managed to bounce today in the face of negative storage news. Unfortunately, the weather outlook for the appears to present “normal” temperature forecasts with regional US pockets of slightly above normal temperatures in the US and in Europe offset by a significant below normal temperature region in Ohio and the southern Ohio Valley.
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