European gas prices increased sharply on Friday, mainly supported by the strong rise in Asia JKM prices (+13% on the spot, to €38.507/MWh). The rise in parity prices with coal for power generation (both coal and EUA prices were up) did not help calm the bullish pressure. On the pipeline supply side, Russian supply rebounded…
As the recent collapse in US bond yields, and the flattening of the term structure continues, the reflation thesis might have peaked, with slower growth in the US, limiting supply pressure, as demand eases. But looking abroad, particularly in Asia, there is a lot of evidence that the reflation experienced in the US is still ongoing. …
The European power spot prices faded yesterday amid forecasts of weaker power demand and stronger wind output, albeit expectations of lower solar generation and French nuclear availability might have limited the losses. The day-ahead prices reached 90.24€/MWh on average in Germany, France, Belgium and the Netherlands, -8.04€/MWh day-on-day. Driven down by the bullish moment of…
Crude prices remained range-bound, at 74.5 $/b for the September ICE Brent contract, bond yields continued to slide lower, as the 10y Treasury bond touched 1.24% yesterday. However, this continued outflow from the commodity complex was balanced by strong fundamental data from the US. According to the EIA (detailed content here: Weekly EIA Report – Week to…
Prices rebounded in most European gas markets yesterday, supported by tight pipeline supply and technical rebound. Russian supply was almost stable, averaging 247 mm cm/day, compared to 248 mm cm/day on Wednesday, with flows to Mallnow (landing point of the Yamal pipeline) still at 0 because of maintenance. Due to an unplanned outage at the…
