Markets Extend Higher Trend
Another new high for the move in crude oil this morning is justified by a surprise moderately significant decline in API crude oil inventories, but also because of ongoing improvement in demand expectations. In fact, a 4.9-million-barrel decline in crude oil stocks was posted against expectations for a build of only 446,000 barrels and all products stocks showed declines.
While the gasoline market did not hold its early range up action yesterday, the bias from the charts remains bullish again today and we think the outlook for demand improvement is underway.
With a huge range up move above the 200-day moving average failing to hold up prices over the last 24-hours, it is possible that the bull camp is temporarily exhausted. However, we think natural gas could begin benefiting from funds and traders looking for an undervalued commodity market capable of benefiting significantly from renewed hope of a nearing into the pandemic.
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