Lower Energy Futures
While we continue to be impressed with the crude oil market’s capacity to hold up around the $40.00 level, in the face of what appears to be a moderating of OPEC plus production restraint, rising threats of softer demand from the unending surge in US infections and reports that Chinese oil storage is at record levels we still can’t rule out the biggest correction since the end of June.
Unfortunately for the bull camp, the charts have extended last week’s negative action even in the face of very supportive US temperatures. While not as important to the US natural gas market it should be noted that China has seen cooler temperatures and with the prospect of a return to US lock downs, the bull camp once again has to fear ongoing industrial demand destruction in the US.
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