Written Commentary
CRUDE OIL
The energy markets were lifted yesterday in the wake of news that OPEC+ was considering a string of output increases for August through December of only 400,000 barrels per day. Initial predictions pegged the output return to be between 500,000 and 1,000,000 barrels per day per month, so getting only 400,000 fresh barrels would have been supportive of the bull case.
After a significant range up extension yesterday, today’s Non-Farm payroll report will be seen as a very important signal on demand for gasoline. Obviously, the trade expects a moderately positive result from jobs today, but the bull camp is partially off balance because of yesterday’s jump in weekly ARA gasoline stocks.
NATURAL GAS
Natural gas prices were able to extend their winning streak to eight sessions, but they have not closed within $0.10 of their daily high over the past 3 sessions. As a result, natural gas may be vulnerable to end-of-week long liquidation and profit-taking.
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