Upside Momentum For Energies
Crude oil and the products have benefited from stronger global risk sentiment and the potential for multiple supply bottlenecks this week. But while they remain on-track for strong gains, they have lost some of their momentum overnight. If there is some positive news out of Washington later today, crude oil could still end the week at a five-week high. Hurricane Delta is currently in the Gulf of Mexico and is tracking towards the US Gulf Coast having climbed back to a category 3 status.
Natural gas has benefited from near-term supply anxiety in front of Hurricane Delta with moderate gains this morning, but it first had to overcome a bearish EIA weekly storage reading from yesterday. The report showed an injection of 75 bcf last week, which was higher than expected. Total storage has reached 3,831 bcf, 11.5% above the 5 year average.
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