Improved Demand Views
Clearly, the crude oil market has been “saved” by a shift back into a global risk on environment, but also because of news that China is making significant progress in halting the delta variant infection surge. Some of the speculative buying in crude oil might have been the result of news that Iran had resumed gasoline shipments to Afghanistan, as that could be a development that delays the modification of Iranian sanctions.
The gasoline market on Monday benefited from the broad-based risk on market conditions generated by stronger equities. However, the market was also lifted overnight because of reports of increased Chinese fuel demand (increased traffic around Beijing) and from this week’s Reuters poll which predicted a decline in weekly gasoline stocks of 1.7 million barrels.
Despite news that weekly natural gas floating storage increased by nearly 10% on a week over week basis, the October natural gas contract this morning has forged a fresh upside breakout and a 7-day high. The latest US temperature forecast out to September 6th has a much above normal temperature area showing up in the center of the US with most of the country seeing average or above average temperatures.
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