Higher Energy Markets
The energy markets are benefiting from the risk on environment presented by the Russian vaccine news but it is also possible that prices are garnering some lift from very favorable Chinese vehicle sales, normalization of the use of the strategic oil reserve to manage the supply glut and from predictions from Saudi Aramco that Asian oil demand is strengthening.
While natural gas prices showed signs of holding up within last week’s consolidation zone, the market did fail at support yesterday and therefore technical signals suggest prices are vulnerable again. Furthermore, the natural gas market yesterday saw lower demand projections for the next 2 weeks and signs of increased US production and that should thicken overhead resistance on the charts.
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