Lower Energy Markets
While the charts have clearly turned down in the crude oil market from the mid-July high, the market should draft some fleeting support from a favorable sweep of global PMI data overnight. However very bearish big picture fundamental headlines are facing the market this week with Russia and Saudi Arabia indicating they are poised to raise production following the decision to bring back some supply.
Given the key reversal last week in natural gas prices following a substantial 7 day low to high rally of nearly $0.30, the market appeared to be vulnerable to downside work this week. In fact with the tropical storm running up the East Coast of the US, the threat against US supply has dissipated completely and that should have undermined the bull camp. However natural gas prices are showing surprising strength in the early going today and managing that action in the face of news that global LNG exports declined for 3rd straight month in July.
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