Written Commentary
CRUDE OIL
Crude oil appears to be losing strength today after yesterday’s recovery. Yesterday there were reports that the White House had asked OPEC Plus nations to increase their crude oil output, but late in the day, the White House said that their outreach to OPEC Plus members was ongoing and that they had not asked US producers to ramp up their output. This led to a sharp rebound across the complex.
RBOB and ULSD finished Wednesday well above their midsession lows, but they are posting moderate losses coming into this morning’s action. RBOB continues to be the strongest member of the energy complex, as it has returned to within striking distance of making new 6 1/2-year highs.
NATURAL GAS
Natural gas prices are holding onto most of their gains from their mid-July upside breakout, but they are starting to see some coiling action after pulling back from last week’s highs. The EIA’s forecast that US natural gas production would increase and that demand would fall for 2021 fueled profit-taking and additional long liquidation yesterday.
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