Risk On Sentiment Extends
Clearly the bull camp continues to look beyond near-term demand concerns, with ideas that energy demand recovery is once again on the horizon.
With RBOB market rejecting a significant downside extension to start the Monday trade and then recovering very sharply the bull camp should be emboldened and the bear camp should be knocked back on their heels.
While the bull camp might suggest that the range up extension in prices on Monday was the result of a colder shift in US temperatures, we think the rally is the result of improving macro-economic sentiment and from reports overnight that demand for floating LNG supply increased by 8.4% over the last week.
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