Written Commentary
CRUDE OIL
While the gains in the crude oil market this morning are not significant, the market did forge a fresh higher high and posted a new high for the year. The strength of the bull camp is noted as the higher high today is forged directly in the face of the first Chinese strategic oil sale.
As indicated in crude oil coverage this morning, the overnight headlines were populated by many reports of fuel scarcity at the wholesale and retail levels. Most importantly the market saw signs of noted improvements in Indian fuel demand with their oil imports in August reaching a 4-month high.
NATURAL GAS
Bullish developments overnight include a slight expansion of the above normal temperature area in the center of the US out to October 7th, news that Sinopec was seeking 11 LNG cargoes for winter delivery, and an upside extension this morning on the charts. On the other hand, overnight negatives include softer LNG price action in Europe, as promised increased flow from Norway and lastly a recovery in wind output.
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