Yesterday was fun. We got the $80 oil we were looking for after a big drop in crude inventories. So now what? See item B below. Natural gas also had a great day and not just because I've been calling for a bottom there, settling up $0.55 (9%) to $6.47 in large part due to short covering inspired by threatening tropical weather and the knowledge that we flip into YoY Deficit Territory this week. We now have Hurricane Humberto soaking the Texas Gulf Coast with potentially refinery flooding rains and Tropical Depression 8 in the Atlantic that is getting better organized and headed for the Hurricane breeding ground that is the Caribbean this time of year. I'll be taking profits where possible in September contracts (that time of the month) and looking for opportunities to roll into October and beyond.
In today's report:
A) A Review of Yesterday's Oil Inventory Report
B) A Look At 4Q Global Supply / Demand Balances For Crude
C) A Preview of Today's Gas Storage Report
D) Changes in Holdings
E) Stocks We Care About Today
F) Odds & Ends
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Have a great one!
Z