Lower Petroleum Complex
While the energy markets waffled around both sides of unchanged yesterday with economic psychology lifting prices early and then forcing prices down late, we see the bear bias extending deep into the session today. Certainly, energy prices shook off a 350-point Dow slide and traded positive yesterday despite negative EIA headline crude oil stocks readings but word overnight that Libyan production has reached 1.2 million barrels per day and plummeting diesel deliveries in Chicago offer fresh bearish fuel to this week’s downside reversal.
Like the petroleum markets the natural gas market feels heavy and in need of some corrective action. Furthermore, with the passing of the tropical storm supply threat, some traders think the frequency of storms will now begin to fall off as the hurricane season draws to-an-end.
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