Renewed Strength For Energies
In addition to continued recovery action in global equity markets, the crude oil market is lifted by news that Chinese crude weekly imports recovered on increased refinery throughput. More importantly for WTI, Chinese oil imports from the US also increased last month by 350,000 metric tons.
While we would have expected gasoline prices to have been under pressure this morning following the World Health Organization warning about a significant infection wave ahead, the market has recovered further and is nearly back to the halfway point of this week’s washout.
With a very definitive upside breakout and extension in natural gas to the highest levels since March 2nd early today, it appears that some significant change in Gas market fundamentals has taken place. At the risk of sounding like a broken record, we must note that much above normal temperatures continue to dominate the latest forecast for the US (out to August 3rd) with the normal temperature area shrinking relative to the previous days forecast.
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