The crude futures market experienced a huge drawdown on Friday of close to 13% intraday, as the news that the omicron COVID variant was spreading rapidly hit the market amid thin liquidity and January being close to expiry. The price drop was further magnified by option dealers adding momentum due to their net short gamma position,…
The forecasts of lower temperatures supported the power spot prices in northwestern Europe yesterday which climbed to 249.81€/MWh on average in Germany, France, Belgium and the Netherlands, +21.06€/MWh day-on-day and +16.63€/MWh from the previous week. Disregarding the weaker energy complex and the growing concerns over the worryingly soaring new Covid-19 cases, the EUAs pursued their…
Details of a potential US SPR release are emerging, with the announcement expected today. First, it is likely that the announcement will concern multiple countries. We expect China and Japan to respond positively to the US demands. Secondly, there could be between 30 and 60 mb of crude delivered to the market, although this number…
European gas prices weakened again yesterday. Amid domestic fundamentals largely unchanged, the moderation in Asia JKM prices (-4.89%, to €103.426/MWh, on the spot; -0.36%, to €103.179/MWh, for the January 2022 contract) continued to exert downward pressure. On the spot pipeline supply side, Norwegian flows were almost stable yesterday, at 343 mm cm/day on average, compared…
The reaction of the markets seems totally disproportionate, but the announcement of the reappointment of Jerome Powell as head of the Fed for a second term has led to a rise in the US 10-year rate of nearly 10bp (1.63% this morning) and has also strengthened the USD, with the exchange rate against the euro reaching 1.1226.…
