Crude Oil, Natural Gas to Move Higher - TheStreet.com

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NEW YORK ( TheStreet ) -- Crude oil and natural gas will likely trade higher this week on China's decision to end the Yuan's two-year peg against the dollar, boosting investor confidence in the global economic recovery and demand growth for crude oil and natural gas.

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The Department of Energy report last week was negative for crude oil prices; however, prices registered a weekly gain on economic recovery. Early this week, crude oil is set to rally on the China story. In addition, the eurozone crisis may have abated for now, in the absence of announcements of fragile economic conditions in other countries, apart from Greece. The forecast of continuing hot weather should firm natural gas prices during the week. The rise in personal consumption and spending data in the U.S. is a positive signal for natural gas prices. In addition, the current year is expected to be one of the most active hurricane seasons this decade, which could support higher natural gas prices. However, natural gas inventories at 14% above the five-year average should keep the price spikes to a minimum.

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This page contains a single entry by Viraj published on June 22, 2010 9:26 AM.

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