Written Commentary
CRUDE OIL
While we must take notice of the crude oil market’s capacity to stand up to the initial bearish shift in a list of fundamentals from earlier this month, the market appears to have settled into a downtrend channel and has forged a fresh 8 day low early this morning. In fact, the failure to see a sustained benefit in prices following a massive decline in weekly EIA crude oil stocks yesterday would seem to embolden the bear camp and unnerve the bull camp.
NATURAL GAS
We are extremely surprised with the sharp range up breakout in the natural gas contract earlier this week as the 8 to 14 day forecast shows a very limited area of above normal temperatures isolated in the southern portion of New Mexico and the far western portion of Texas and more importantly in the face of an expansion of “BELOW NORMAL” temperature areas.
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