Lift in Market as Temps Cool
While crude oil contract spiked toward the $50.00 level early today prices have initially retrenched by $1.00 in sign that the gains from risk on psychology were overdone. While the bull camp might suggest that this week’s OPEC+ meeting will support prices, we are thinking the opposite may be seen.
Obviously, the natural gas market received a significant lift from the shift to colder temperatures in the US South but also because of significant cold in China. Furthermore, forecasts expect colder temperatures to extend from central Europe to Eastern Europe and clearly weather has shifted from bearish to bullish.
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