European gas prices continued to correct downward yesterday, further reducing their premium over parity prices with coal for power generation. They ignored the additional drop in Russian supply (248 mm cm/day on average yesterday, compared to 266 mm cm/day on Tuesday) due to the complete halt of flows to Mallnow (landing point of the Yamal…
Much ado about nothing: the Fed minutes showed many Fed members getting more nervous about inflation and eager to discuss tapering bond purchases in order to react quickly if necessary. The most noticeable information that was not obvious after the Fed meeting was growing concern about the impact of monetary policy on the overheating housing market. Some…
The European power spot prices jumped near 100€/MWh yesterday as the forecasts of dropping wind output offset the falling clean gas and coal costs. The day-ahead prices hence reached 97.79€/MWh on average, +20.82€/MWh day-on-day. Eroding all the gains from the two previous weeks in the largest sell-off seen since 2006, the EUA prices plunged by…
ICE Brent and WTI’s entire forward curve sold off yesterday by about 3$/b, as the whole commodity complex suffered from a continued rise of the dollar. However, time spreads remained tight, with ICE Brent M1-M2 at 95 cents. The uncertainty revolving around the OPEC production policy path remained elevated, with no ongoing negotiations reported. Saudi Arabia…
European gas prices dropped significantly yesterday, pressured by below-normal demand and technical correction, which outweighed the impact of lower Russian supply. Indeed, due to maintenance at Mallnow (landing point of the Yamal pipeline), Russian flows dropped to 266 mm cm/day yesterday, compared to 322 mm cm/day on Monday. As for Norwegian flows, they dropped very…
