Crude oil starts the week at a seven month high, as the $70 mark is within reach in the short term (currently in the $67-68 range). Global oil demand estimates are picking up, fueled by expectations that China’s strong industrial manufacturing numbers will continue. There appear to be a number of global economic bulls in the market, with much talk of a rapid economic recovery. Our view at this point is more tempered, and the 30% gain in crude seen in May should scale back; long term, I believe that crude will continue to rise, but the growth should be incremental, and I am waiting for a move back to the mid to upper $50s before calling for an entry point into AugSep crude. I am more bullish in the short term on natural gas, which may be near a low ahead of summer demand season. Next week, start to look for the Weather Trends weekly CDD estimates for US markets.  More to come on this topic in the days ahead.

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This entry was posted on Monday, June 1st, 2009 at 12:38 pm and is filed under Energy, Global Commodities, Global Weather, United States. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.