Obviously, the bull camp needs inflation to moderate for economic optimism to expand and inflate future energy demand expectations further.
Read MoreWhile we will not argue against the potential for further gains today, the actual physical supply impact of a 1 million barrel per day OPEC+ production cut back should ultimately prove minimal as producers have over complied with production cuts throughout the entire restraint agreement.
Read MoreThe question of slackening energy demand will linger, but in our opinion, tightening supply is going to outpace any losses in consumption
Read MoreWe leave the edge with the bear camp as there are too many negative outside market forces to list!
Read MoreWhile we think the markets are close to equilibrium values, Chinese demand fears and a continued flow of pre-sanctioned Russian oil supplies have left the bear camp in control.
Read MoreGoing forward, the energy trade is likely to continue to factor in the prospect of a full block of Russian oil exports to countries participating in sanctions.
Read MoreThe big question is whether the energy complex has made a significant top or is simply in a corrective mode.
Read MoreWhile we leave the big trend pointing up in the energy complex, we suspect the "easy money" has been made and the risk to longs has increased greatly.
Read MoreApparently, the energy markets have "thrown off" the corrective track in yesterday's action, with crude and gasoline spending the entire overnight trade above yesterday's closes.
Read MoreEnergy prices fell back to start the trading week despite ongoing production problems into separate areas.
Read MoreWhile there could be temporary bouts of holiday optimism in equities ahead which in turn could lead to gains in oil prices, we think infection counts leave control with the bear camp.
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