Petroleum Corrective Action Continues
With the crude oil contract remaining close to the spike low from yesterday in the early trade today, the bear camp retains the edge. However, as in many other physical commodities and certainly in the equity markets, today’s US CDC daily infection count release could set the tone for the day and the rest of the week. Like the crude oil market, the gasoline market remains near yesterday’s spike down move in a fashion that leaves the charts bearish.
With natural gas prices sitting just under contract highs it is clear that much above normal temperatures for a large portion of the US and above and much above normal temperature areas over all areas in the US except for southern Texas, the extreme northeast and the extreme southwest demand for gas should remain strong. In fact, US weather forecast calls for an extension of hot weather out to August 2nd. Furthermore, extreme heat in China is driving up consumption there and that is partially responsible for a 31% jump in floating demand for LNG loadings from last week.
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