Energy Prices Higher
While initial gains in crude oil prices this morning are not significant we suspect they are the result of a slight improvement in global market sentiment, recent favorable Chinese data, the US executive action over the weekend to support the US economy and from news that large oil companies have put in place plans for production cuts of 1 million barrels per day.
It is very difficult to determine price direction in a market that appears to be in a long-term shift in fundamental views. However predicting natural gas prices is made even more difficult by the fact that the market has now corrected massively from historic low pricing during the past 4 weeks.
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