Natural Gas and Crude Oil Market Outlook

The natural gas market is maintaining its view and bias at cautiously bearish. The surplus that is building in inventory versus both last year and the five-year average is going to get harder to work off until we see cold over a major portion of the U.S.  For the medium term, it is uncertain if natural gas will be able to muster any kind of strong upside rally absent some very cold weather for an extended period of time.

Although WTI crude oil is trading near the key technical support level of the mid- $94’s/bbl, the market broke down last week and the market has downgraded its crude oil view and bias at cautiously bearish for the short term.

Earlier risk asset prices were mixed, as shown on the chart below.

Description: Description: http://www.advancedenergycommerce.com/PubImages/16/chart19.gif

Advertisements

About JWM Energy Consultant
Professional Energy Consultant. I advise large energy-users on procurement strategies to reduce electricity and natural gas costs.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: