Energy Markets Sharply Lower
While the net spec and fund long in crude oil in the most recent report remained well below the 2020 high of 616,630 contracts, gains after the report should have added another layer of spec-longs. With demand destruction fears back in a front and center standing this morning, it-is-clear the energy markets are in for a combination of technical and fundamental liquidation.
In retrospect, the natural gas market did not garner significant buying fuel during the early December rally from positive macroeconomic conditions. Therefore, the risk off event this morning has not knocked gas prices lower.
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