Written Commentary
CRUDE OIL
Given deterioration of the macroeconomic condition from escalating fears of infection counts in several US states, the crude oil market is justified in showing some minor corrective action. However, in a surprising development, the positioning report in crude oil last week showed a reduction of the net spec and fund long by 26,379 contracts which suggest the market retains buying fuel going forward.
NATURAL GAS
We continue to see the current bounce in natural gas as a technical reaction, as near term supply and demand fundamentals continue to be bearish. While the US inventories as a percentage of the 5 year average have contracted for 5 straight weeks, the surplus to the 5 year average remains substantial at a 16.9% surplus.
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