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Softer Demand Signs Discounted

CRUDE OIL

With another new high for the move in November crude oil this morning, the bull camp extends its control deeper into the trading week. As in the number of other physical commodity markets, the crude oil market is relieved that the prospects of Fed tapering were reduced by a surprisingly soft US consumer price index reading yesterday. It should be noted that energy prices took news of the first Chinese strategic petroleum sale on September 24th in stride which is another sign of a bullish environment.

Like the crude oil market, the gasoline market has forged another higher high for the move this morning and in the process, it has reached the highest level since August 2nd in a trade that extends trend talk into another session.

NATURAL GAS

While the natural gas market did not hold “all” the initial gains forged yesterday, a new contract high has been forged again this morning leaving the bull camp with technical and psychological control. Apparently, the natural gas market is not limited by news that floating supply of natural gas increased by 6.9% versus the prior week and the market has also not been tripped up by reports that US export activity has been disrupted by two hurricanes this month.

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