Crude prices remained supported to 71.8 $/b for ICE Brent prompt futures. As the EIA weekly release showed a seasonally average week, with stock draws in crude and products of about 5 mb (see report). Another drop in gasoline stocks, combined with emerging hurricane threats and some unplanned outages in Gulf Coast refiners, triggered an impressive rally in…
US equity markets hit new highs yesterday, but futures flipped and Asian markets fell instead. The dollar is fairly stable around 1.1750, but bond yields are edging up with the US 10 year now at 1.33%. The economic reports have little impact before Jerome Powell’s speech scheduled for tomorrow in Jackson Hole. Yesterday, the decline of…
European gas prices increased strongly yesterday, continuing their technical rebound as many market participants preferred to close their short positions in anticipation of a German-court ruling on the Nord Stream 2 pipeline. The rise in Asia JKM prices (+3.06% on the spot, to €47.752/MWh) and in parity prices with coal for power generation (both coal…
NWE spot baseload power prices were almost stable yesterday, to €89.703/MWh on average for today delivery (compared to €88.545/MWh /MWh for Tuesday), as the impact of higher wind generation (13743 MW in Germany for today, compared to 7307 MW yesterday) was offset by rising fuel costs. EUA Dec’21 prices continued their rebound, closing at €56.64/t…
ICE Brent front-month contract rallied back to 71 $/b yesterday, with the Oct/Nov time spread climbing a high as 75 cents, from 40 cents the day prior. We believe the front-month contract’s fair value remains close to 70 $/b, given the dollar strength and how time spreads rallied strongly from their previous values. PEMEX brought…
