Like many other markets the crude oil market appears to be locked in a trading range because of a lack of clarity on the vaccine front. However, the market should be supported by another large decline in crude stocks with the API decline of 4 million barrels last night possibly signaling a 3 week decline in EIA crude oil inventories late this morning of 22 million barrels.
The capacity to remain within the past week’s consolidation range is a moral victory for the bull camp as a number of fundamentals like moderating US temperatures, rising US/Chinese tensions and reports that Permian basin gas rigs are likely to come back on-line all failed to pressure prices. However, the charts in natural gas this morning favor the bear camp with a trade below yesterday’s low early and a drift toward the consolidation low of $2.118.
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