Written Commentary
CRUDE OIL
While we see the crude oil rally as counter to recent fundamental conditions there is no denying the impressiveness of the upside breakout overnight. In fact, the September crude oil contract has now filled the panic gap from the announcement of widespread US lockdowns back in early March, which would seem to suggest that the trade expects demand to continue to recover despite cracks in the foundation of the US economy.
NATURAL GAS
The list of potential bullish factors lifting natural gas prices include ideas of surging US LNG exports to China, surging overall US LNG exports (due to a falling dollar), expectations of proof of a decline in US natural gas production and the potential that hedge funds are shifting from crude oil positions into natural gas off the idea of a long-term recovery in the global economy.
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