Written Commentary
CRUDE OIL
The bull camp in the crude oil market this morning has to be very happy with the early action as prices have climbed back above the 100 day moving average and are approaching this week’s highs in the face of a downgrade of hurricane Delta to a category one storm late last night. However, the storm has been pushed back up to a category 2 storm early today and is expected to reach category 3 storm strength at 1 AM central time on Friday. While the threat of a major hurricane was widely known and partly responsible for the large rally on Tuesday, the lack of support for prices yesterday clearly opens up the potential to re-inject some weather premium today.
NATURAL GAS
The natural gas market continues to waffle within a wide trading range this week but did fail at that consolidation low and hasn’t seen lift from a hurricane threat. In fact, the natural gas market has not only waffled around the 100-day moving average for seven straight sessions, it has consistently failed at that average suggesting the average at $2.5335 should end up as solid resistance in the days ahead
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