The energy complex has started out this week under fresh pressure, as fears of global economic slowing are generating negative market news headlines again. With a stronger Dollar and weakness in a long list of physical commodity markets, many traders feel that there appears to be a "risk-off" vibe throughout global markets. Weaker economic sentiment is at least partially the result of today's surprisingly weak German Ifo reading, as that has rekindled concerns of sagging energy demand in the Euro zone.
While crude oil might find some support from news of a Chinese product purchase, fears of global economic slowing are still likely to dominate energy trading today. In fact, some energy traders might be watching major global equity markets today as further weakness in that sector could lead to additional pressure for physical commodity markets. However, crude oil might find some minor early support this morning from a series of cooler than expected US temperature readings from over the weekend.
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