Weakness in Energy Prices
The initial weakness in energy prices this morning would appear to suggest that prices have become “too expensive” as stellar Chinese oil import data overnight should have provided another leg up in prices. In fact, Chinese 2020 crude oil imports jumped 7.3% in a pandemic impacted year and China added new refineries which should increase their need for crude oil in lockstep fashion.
Obviously, strong Chinese gas imports provides the Natural gas market with a very important fundamental underpin. In fact, Chinese gas and LNG 2020 imports increased by 5.3% in a pandemic year and reached a very important level of 101.66 million tons and that demand news is magnified by a significant cold surge.
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