Written Commentary
CRUDE OIL
The surprising rally in crude oil prices from this week’s initial spike low continues despite a high degree of uncertainty on the political and economic environment in the US. However, it is likely that the flow of positive PMI and ISM readings from around the world this week has helped to temper demand destruction fears in the face of news of shutdowns in Europe and increased restrictions in the US.
NATURAL GAS
With a big range down washout in December natural gas to the lowest level since the big rally day on October 5th yesterday, and the downside extension this morning it would appear as if something of significance has changed since the Monday high. On the other hand, it is possible that the net spec and fund long in natural gas not only exhausted buying fuel but left the market significantly vulnerable to aggressive stop loss selling.
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