Stronger Upside Action For Gasoline
All things considered, stronger action in June crude oil (a 6-day upside breakout) is very impressive considering the fundamentals facing the market. Apparently, seeing OPEC plus confirm their intentions to return production to the market in each of the next 3 months has been fully discounted by the trade which in turn suggests demand expectations are being revised higher.
The gasoline market is showing even stronger upside action than the crude oil market this morning with the market likely stirred by signs that the US infection rate is plummeting and activity restrictions for outdoor interaction have been virtually erased.
With another impressive range up extension in natural gas this morning, we suspect the market is benefiting from stop loss buying from funds. However, it is also possible that the natural gas market is seeing fresh fund buying seeking inflation sensitive/cheap physical commodity holdings.
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