Losses For Natural Gas
We expect fresh highs in crude oil later today as the incoming administration promises/threatens to curb the US oil industry. From a macroeconomic perspective, the bull camp should also be confident that the coming news cycle will be rife with expectations for a quick passage of the long awaited “next” US stimulus package.
Obviously, the gas market has buckled off a warmer weather mix but also because of a series of “ongoing” technical failures on the charts. Fortunately for the bull camp the net spec and fund long in natural gas has declined from the October 2020 high of 98,000 contracts down to last week’s reading of only 28,778 net spec long and that positioning should be reduced even further by the decline of $0.23 from the last COT report.
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