Written Commentary
CRUDE OIL
While the July crude oil contract forged another higher high for the move and appears poised to test the $70.00 level, the market failed to hold those gains. However, the bull camp should be cheered by news that API crude oil stocks fell by 5.36 million barrels especially with a-number-of anecdotal energy demand readings showing improvement.
The gasoline market continues to stick to the $2.20 level with very positive road use figures documented by Spain, the US and UK. Road use gains highlight the trend of improving demand, but that sentiment will be challenged by today’s EIA implied gasoline demand reading.
NATURAL GAS
Despite signs of high cooling degree days ahead and strong US Gulf Coast LNG exports, natural gas prices continue to retrench from the big range up action on Tuesday. In a fresh supportive development, Argentina reportedly unloaded the first LNG cargo for the looming winter from the US, but that news was offset by reports that UK temperatures will decline, and gas demand in the UK is expected to run 22% below seasonal levels ahead, possibly because of increased wind generated output.
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