Rallying from a 7-week low in the prior session, natural gas futures rose more than 15% on Wednesday afternoon as the demand outlook for natural gas improves.
Oil prices rallied after touching multi-decade lows in April, but they have been stuck in a narrow trade band for 2 months now as the pent-up U.S. demand rebound in June has fizzled out with flattening fuel consumption that continues to struggle to reach pre-pandemic levels.
A crude oil inventory draw of 1.6 million barrels sent oil prices higher today, with the EIA also reporting a fall in gasoline inventories and a modest build in distillate fuel inventories.
Crude Oil is up about 1% this morning but trading off its overnight high of 57.04. Price action was suppressed through much of Friday until news broke that Iran seized a British tanker.
Investors who were looking for a quick opportunity to attack the Pound were given the green light on Thursday after Britain’s service sector rebounded less than expected last month.
While markets get whipsawed on trade war fears, back in the real economy things are smoking. Not only did we see smoking demand for oil, the preponderance of economic data is signaling even stronger U.S. and global energy demand.
