Classic trader move today.. Oil to NGWith Oil hitting $90 the traders decided to drive NG up instead regardless that there's more NG being produced, and today's reason was back to HOT weather in the summer! NG will come back down and by Sept it'll be at $5 or less. Oil is at the bottom of the day at $90 and the reason is OPEC has added another 100,000 bbl/d but Oil never moved down when Libya added 1.2Mil bbl/d plus they reported a crude surplus inventory.
The reasons and excuses always are added after the fact so that they're tailor-made. Oil gains have been wiped out from Feb when Oil started its climb up to $120. I don't see any analysts saying that Oil will stay over $100 for the year like they were doing a week ago. It's not rocket science, economies are contracting and we're heading for much slower times as we get closer to being in a global recession and Interest Rates are still climbing around the world so demand will fade.
Plus I posted that when NG was declining I said to expect a kick-back and that's what we're seeing today. It'll return to selling off. JMHO