Written Commentary
CRUDE OIL
All things considered, the action in the crude oil market has been very impressive and indicative of residual bullish control, as demand could have easily been undermined as-a-result of events and data released over the past 3 weeks. However, the bull camp should be emboldened this morning by news that Indian May crude oil imports rose by 18.2% over year ago levels, but that supportive news was more than offset by a 5.5% month over month decline in Indian oil imports.
Like the crude oil market, the gasoline market corrected definitively last week and has aggressively rejected a probe below $2.10 in the August contract in a sign of potential value at that level.
NATURAL GAS
While the August natural gas contract has built solid chart support at the $3.20 level, Friday’s close below the prior 5 closes and an early violation of the $3.20 level this morning suggests the charts are vulnerable. The latest forecast has hot US West temperatures expanding east, but that is offset by a forecast for cooler temps in the East.
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