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Key Blow-Off Top in Energies


While damage estimates were not available as of this writing, daylight should bring significant information on the disruptions to US energy infrastructure. However, reports from the CEO of the Port of New Orleans and from reporters on the ground in New Orleans it appears as if the damage was significantly less than the damage seen from Katrina.

As indicated already, the gasoline market has recently lagged the crude oil market, but in the overnight trade gasoline grabbed control and surged because of fear that a Category 4 storm would result in several sustained refinery closures.


With early estimates indicating 17% of total US petroleum was off-line due to Hurricane Ida, we assume similar natural gas supply disruptions. However, from a technical perspective the massive rally and failure to hold the gains overnight suggest a “blow off top” has been forged.

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