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Demand Keeps Prices Lower


The energy complex yesterday benefited heavily from a “risk on” optimism flowing from global equity market gains and from the latest upbeat news flowing from the vaccine front, and not from internal developments. In fact, supply-side conditions continue to favor the bear camp with Libyan production rapidly offsetting OPEC plus restraint and given the prospect that the global call on crude oil from refiners likely to remain very low in the coming weeks.


From a technical perspective, the Monday gap down failure in gas should expose a very large spec and fund long contingent to the prospect of further downside action from ongoing stop loss selling. Adding into the bear case this morning are reports that demand for floating supply of natural gas internationally has softened at-the-same-time that US flows to export facilities slowed last week.

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