Tropical Storm Delta Forecast to Hit Gulf Coast
October 6, 2020
Energy markets are again trading higher this morning after yesterday’s strong rebound. The President returning to the White House, the hope that another round of stimulus is coming, and the shutdown of some Gulf production due to tropical storms are supporting prices.
It is an interesting world we live in as energy markets were supported on the news of the President’s health getting better and his return to the White House. The fundamentals currently do not seem to have a big influence, and it is heavily weighted about the news headlines. Despite yesterday’s big up day and more upside today the market has not staged a breakout. It is still trading in its range. If the news continues good, then prices can trade higher, but the bulls have work to do to change the longer term trend to up. Near term upside looks to be corrective unless a major event provides a much bigger jump up in prices. Could one of these current tropical storms strengthen and be problematic, trader will be watching.
Tropical Storm Delta formed over the weekend and is now expected to turn into a major hurricane and currently on target to hit along the gulf coast in Texas, Louisiana, Mississippi, or Alabama late Thursday or Friday.