Slow Uptrend in Energies
The crude oil market continues to be a slow-moving freight train moving higher with the energy markets benefiting from the not too hot, not too cold US nonfarm payroll result. With crude oil prices this year up $21 per barrel and the global economy muddling its way to recovery, one wonders how far prices would have run if pent-up demand from the lockdowns was as concentrated and robust as predicted.
Like the crude oil market, the gasoline market has shown a very uniform uptrend pattern since the major May washout low of $2.0322. However, the market has risen above a critical $2.20 price level and with summer air travel not showing signs of picking-up, it is possible that “driving vacations” will be in vogue.
While last week’s spike up move was the result of hot US temperatures and the market has been presented with additional warmer than normal US forecasts, prices appear to be limited by the $3.10 level on the charts. In a psychologically supportive development, the Baker Hughes US gas drilling rig count declined for the 4th week in a row, but gas drilling rig numbers in Canada were unchanged.
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