WTI Crude Oil
The WTI Crude Oil market rallied during the day on Wednesday, as we continue to reach towards the $50 level above. The $50 level above of course has a certain amount of psychological importance, and I think that the sellers may return in that area. We will have to see what happens with hurricane Irma, and I think a lot of this is “front running” the potential damage to the oil infrastructure. If we break above the $50 level, the market should then go to the $52 level after that. Ultimately, this is a market that could turn around rather rapidly, if suddenly there is a sign that the damage will be limited, it’s very likely that the market could turn around and start selling just as rapidly as we have seen the market rally.
Natural Gas
Natural gas markets rallied a bit during the day, but you can see there is a certain amount of resistance just above the $3.00 level, so I think that the sellers are probably going to be coming back as hurricane Irma should start to turn away from any natural gas infrastructure. Ultimately, the market should go down to the $2.85 level, and you can see that the massive resistance from the $3.00 to the $3.10 level has held, although we certainly had quite a bit of excitement in this market to the upside. Ultimately, the oversupply of natural gas has not change, this is a short-term pop in a market that continues to struggle with demand issues. Given enough time, I think we can break down below the $2.85 as well, but obviously that is going to take a significant amount of momentum building. If we somehow broke above the $3.10 level, that would be a very bullish sign.
