Written Commentary
CRUDE OIL
Crude oil has had a strong start to the third quarter, climbing above $75 per barrel for the first time since October 2018. There are indications that Saudi Arabia and Russia have reached an agreement on increasing crude oil output, and there are reports of a proposal for OPEC-plus nations to increase their output by 400,000 barrels per day each month, starting in August and ending in December.
RBOB and ULSD have posted significant gains overnight. RBOB has been unable to make a new high for the move so far, but it does appear that the August contract has built a base of support at $2.2110.
NATURAL GAS
Natural gas prices have held an inside-day range and are posting moderate gains coming into this morning’s action. While the market fell back from the huge Tuesday spike rally, prices remained in positive territory for most of Wednesday. Fundamentals remain supportive, with inventories in the US coming down and tightness in Europe verified by a 15-year high in UK gas futures.
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