Written Commentary
CRUDE OIL
October Crude Oil was spend the first part of Thursday trading inside Wednesday’s range. This follows a sharp selloff earlier this week after the latest round of US sanctions amounted to warnings but no much action. News this week that Oman and Iran had reached an agreement to temporarily reopen a channel through the Strait of Hormuz offered additional pressure this week, but it may not be a done deal.
PRODUCTS
Like crude oil, product prices were inside Wednesday’s ranges early Thursday as the market lacked the kind of market making news that dominated the previous sessions. Wednesday’s EIA report was supportive, with US gasoline stocks -2.5 million barrels last week vs -0.7 million expected, and distillates were -2.2 million barrels vs -1.6 million expected. Stocks of both products are at their lowest levels for this point in the season in at least six years.
NATURAL GAS
October Natural Gas extended its rally early Thursday and reached its highest level since July 24. On Wednesday the market managed to close a gap from July 27, which satisfied a technical objective. For EIA storage report today, the Reuters poll has an average expectation calling for US gas in storage to be +20 billion cubic feet for the week ending August 21 (range +15 to +27) versus a five-year average for the week at +33 bcf.
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