Yesterday’s OPEC meeting was uneventful, as the group briefly met, to extend the current production policy of a 400 kb/d group-wide production increase in October. The impact of Ida, combined with lost Mexican production, removed a substantial volume of sour crudes, especially needed for US refineries. With the Biden administration’s latest comments on OPEC policy, the…
Over the last two days, the German 10 year bond yield has increased by 7bp while the US 10 year is only up 3bp and turned down yesterday. This is the main reason why the EUR/USD exchange rate has risen from 1.18 to 1.1850. ECB hawks have been calling for an immediate reduction in ECB asset purchases, especially…
November ICE Brent futures became the front-month contract, with prices back above 72 $/b on early Wednesday. The API survey, released yesterday, reports a 4 mb draw in crude oil inventories, while gasoline inventories grew by 2.7 mb. The EIA data release, expected today, will have little impact on the market, as volatility in US fundamentals is expected…
NWE spot baseload power prices were up yesterday, to €112.274/MWh on average for today delivery (compared to €110.078/MW for Tuesday), supported by expectations of lower wind generation (4766 MW for today in Germany, compared to 11388 MW yesterday) and slightly higher clean fuel costs. EUA Dec’21 prices closed at €60.76/t (stable day-on-day), still supported by…
European gas prices rose again yesterday, still supported by relatively weak stock levels and uncertainty over Russian supply for the coming months. The rise in Asia JKM prices (+2.72% for the October 2021 contract, to €52.655/MWh) and in parity prices with coal for power generation (thanks to higher coal prices) provided additional upward pressure. On…
