Markets See Favorable Fuel Demand Reports
With a fresh lower low for the move yesterday, September crude oil extended the technical damage on the charts to a 4th straight day. However, the markets are seeing favorable fuel demand reports and some shorts are likely covering to avoid crude oil gains off a positive US jobs report.
As opposed to the crude oil market the gasoline market has found value on the charts with 3 days of consolidation lows around $2.2340 in the September contract. Apparently, US gasoline demand remains solid and that is given additional weight by persistent stories of surging Indian fuel demand.
Seeing the September natural gas contract exactly match the prior days high and contract high and then fall back to the same close as the previous session, probably prompts technical traders to predict a temporary top. However, the weekly injection report showed a much smaller than expected injection and much above normal temperatures continue to dominate the lower 48 states well beyond midmonth.
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