WTI Crude Oil

The WTI Crude Oil markets fell during the course of the day on Monday, testing the $30 level yet again. It looks as if we are trying to break down to lower levels, perhaps reaching towards the $20 handle. Ultimately, any rally at this point in time should be sold, and it will only be a matter of time before we break down from there. Ultimately, this is a market that cannot be bought, there is far too much in the way of negativity and of course lack of demand out there, so I believe that the WTI Crude Oil market is a “sell only” type of situation at this point in time.

Natural Gas

Natural gas markets gapped higher at the open on Monday, and that is a very bullish sign. We broke above the $2.30 level, but turned back around to form a bit of a shooting star which is negative. With that being the case, it is likely we will pull back from here and try to close the gap meaning that we will head to the $2.25 level next, and then if we can break down below there we could go much lower. Ultimately, this is a market that is very negative, and it should continue to be so because while there is a lot of supply in the crude oil market, there is even more in the natural gas markets. There simply is not enough demand to take care of the supply, especially considering that the winter has been very mild in the northeastern part of the United States.

At this point in time, I don't really even have a scenario in which I'm willing to buy this market, I think that's going to be the case going forward. In fact, I believe that it's going to take something pretty remarkable for this market to turn back around.