China continues its slide with a 9 percent decline taking US equity markets with it as the Dow and S and P are locked due to the 5 percent circuit breaker being tripped going into the New York open.
Natural gas futures climbed for a second day in New York as forecasts showed frigid weather blanketing the lower 48 states later this month and early next year, stoking demand for the heating fuel.
Oil traders have to balance demand risks associated with a stock market sell-off vs. the possibility that the Fed may back off tapering after a terrible jobs report. An oversold market and an uncertain stock market may give the bears some pause.
Oil volatility is back and the bulls are no longer going to get a free ride bought and paid for by our friends at the Federal Reserve. Add to that the fears of a China meltdown based on a credit freeze.
Natural gas broke out above $4.00 in decisive fashion as the trade seemed to embrace the fact that Goldman Sachs has upped their natural gas forecast and catching up with the bottom that I called in January.
Seasonal RBOB traders beware! The Energy Information Administration rocked the market by reporting a surge in oil supplies and rocking refinery runs. U.S. crude oil stocks climbed by a higher-than-expected 2.7M barrels.
