Written Commentary
CRUDE OIL
Apparently, the bull/bear switch was thrown in the Thursday trade with the markets forging the biggest range and washout since the major spike down on September 8th. Clearly the trade was undermined from the supply-side of the equation following a series of headlines documenting increased production from OPEC/Libya but the bigger negative today is the addition of a number of major negative macro-economic demand concern developments. Adding into the negative supply-side of the equation for Crude Oil is the resumption of exports from Libya, even though that restart was already known earlier in the week.
NATURAL GAS
Like the petroleum complex, the natural gas market has been put under even more pressure as-a-result of deteriorating demand prospects and also because of revelations that production has picked up in the US. In fact, the EIA made it official earlier this week with an increase in lower 48 US production stats and that trend of higher production is emphasized by the recent uptick in North American gas rigs operating.
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