Written Commentary
CRUDE OIL
While the crude oil market seemed to lead the commodity markets lower yesterday, the market has rebounded today off a series of bullish headlines. The US Department of energy and private sources are suggesting up to 80% of US Gulf production remained off-line as of yesterday.
The gasoline market has spent nearly the entire early trade in positive territory this morning and Gasoline is bolstered by news that Asian fuel oil prices are surging and road traffic in Asia and Paris is back toward normal. However, a major limiting force for gasoline prices is the news that US imports of European gasoline jumped to the highest level since late May in the most recent weekly data.
NATURAL GAS
After a key reversal yesterday in October natural gas yesterday, the initial trade today in positive territory is surprising. However, a portion of Gulf gas production remained off-line as of yesterday, European gas prices have posted fresh record highs, UK gas production has reportedly declined 28% year-to-date versus year ago levels and there are reports that Brazil is becoming a significant buyer of LNG from the US.
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