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More Bearish Than Bullish Headlines

CRUDE OIL

The impressiveness of the WTI rally over the last several quarters is given added credence by a Bloomberg story overnight indicating that a 4th day lower would be the longest string of daily declines since March. Apparently, seeing demand concern following poor economic data from the US and China, increased Delta variant infection headline flow, a stronger Dollar and specifically signs of softening Asian demand give the bear camp control this morning.

While the gasoline contract initially rejected a spike down 5-day low yesterday, the charts were damaged with the sharply lower close yesterday and demand threats are numerous.

NATURAL GAS

While the natural gas market rejected a 19 day low aggressively yesterday, the charts remain negative. However, the US temperature forecast out to the end of the month predicts a slightly larger region of above normal temperatures in the West, Hurricane Grace could still impact western Gulf of Mexico production, and US LPG exports in August look to come in above July exports.

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