Over the past five trading days, the Standard & Poor’s GSCI Brent Crude index is higher by 2.17 percent.
Although crude oil inventories are low, the coming reduction in seasonal demand coupled with the expected gain in global supply capacity in 2014 should hold down prices.
The S&P GSCI Natural Gas index posted its biggest one-day gain in two months last Thursday after inventories rose less than expected in the U.S.
Natural gas supplies dropped to an 11-year low this winter as frigid temperatures in the East and throughout the Midwest boosted its demand for home heating.
The slow increase in inventories after the arrival of warmer weather is raising concerns whether natural gas producers will be able to replenish U.S. stockpiles in time for next winter.
The S&P GSCI Natural Gas index rose 1.72 percent over the past five trading days and is up 9.72 percent over the past month.
This article was written Laif Meidell, CMT, president of American Wealth Management, and portfolio manager of the AdvisorShares Meidell Tactical Advantage ETF (MATH).