The possibility of a coordinated SPR release is seriously denting the sentiment and upside risk in crude oil futures markets. Japan is now considering seriously an SPR release, while China confirmed that it was already destocking its strategic stocks. The US also released stocks last week, but these releases were part of the scheduled releases up…
European gas prices weakened last Friday. Amid unchanged domestic fundamentals, the moderation in Asia JKM prices (-0.64%, to €108.740/MWh, on the spot; -8.16%, to €103.547/MWh, for the January 2022 contract) exerted downward pressure. On the spot pipeline supply side, Norwegian flows were stable on Friday, at 344 mm cm/day on average. Russian supply was almost…
The EUR/USD exchange rate hit a new low on Friday at 1.1250 and could weaken further. The announcement of a strict lockdown in Austria sent eurozone bond yields plunging, fueling fears of a further severe economic slowdown. Among the larger countries in the zone, the highest risks are in Germany, where vaccination rates are lower and hospitals are facing staff shortages.…
The European power spot prices rose above to 230€/MWh for today (and up to 251.84€/MWh in France), lifted by forecasts of lower wind and hydro generation combined with colder temperatures strengthening the power demand. The day-ahead prices averaged 228.75€/MWh in Germany, France, Belgium and the Netherlands, +33.20€/MWh from Friday but in line with the previous…
Crude prices continued to hover around the 82 $/b for ICE Brent Jan delivery, amid falling diesel cracks in Europe and the US. Indeed, refining margins have weakened to flip into contango at the prompt for Europe and Asia, as diesel prices softened, fuel oil prices dropped heavily, while gasoline and naphtha remained supported as refiners…
