Crude’s Disconnect – What It Means and How to Trade It

This past week, energy markets behaved in what many people view as an unusual manner. As crude oil futures exhibited one of the largest weekly declines in a while, natural gas held steady and even rallied around the middle of the week. To add even more confusion, those moves happened as the major stock market indices strengthened again to challenge their all-time highs. So, what is going on? Why is crude underperforming so badly relative to natural gas and stocks? First, let’s look at the crude/natty relationship As I write on Friday, crude…