Ongoing Demand Hope For Energies
Ongoing strength throughout the energy complex following news earlier in the week that OPEC plus will incrementally increase output in each of the next 3 months is a testament to the bull’s resolve. While the weekly EIA inventory report was bullish with the annual crude stock deficit expanding by 11 million barrels on the week, the real driving force in the market is surging demand views.
Global demand expectations are driving gasoline and diesel prices higher this week, especially with very strong demand headlines flowing from China.
We are somewhat surprised in the natural gas markets inability to forge another new high for the move following overnight reports of aggressive bidding in Asia for LNG supply. While it is early to begin focusing on cooling demand, the temperature forecast out to May 11th has nearly one-half of the lower 48 states with above normal temperatures.
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