In addition, with the peak summer demand period entering its last month, the spec longs might continue to lighten up since it won't be long before stocks start to build again. Nothing appears set up for today's turning point. Friday's sharp down reversal probably signaled a top in Sep heating oil only because similar action signaled a top in unleaded gasoline. As mentioned before, distillate supplies are more than ample, and should rise further into the fall heating season. We wouldn't be surprised to see a decline to 5000.
Nothing appears set up for today's turning point.
Sep natural gas remained on the defensive due to the outlook for normal to below normal temps across most of the US into early next week. We wouldn't be surprised to see a pullback to 2500 support and possibly the gap at 2280. Nothing appears set up for today's turning point. There's also the increasing likelihood that the Step 2 program will go back into effect later this year. However, we feel the up move is on borrowed time.