European gas prices weakened yesterday, pressured by more comfortable spot fundamentals (above-normal temperatures, higher LNG supply). Moreover, on the pipeline supply side, Norwegian flows rebounded to 328 mm cm/day on average yesterday, compared to 311 mm cm/day on Tuesday. Russian flows were also higher, to 262 mm cm/day on average, compared to 256 mm cm/day…
A general decline in equity markets and a dramatic drop in long-term bond yields yesterday in the wake of oil prices. It is also likely that the strong demand at an auction for a 5-year US Treasury bond triggered a short squeeze forcing many traders to hastily buy back their short positions. The 10-year rate is at…
Yesterday, we estimated that the negative impact of inflation on the purchasing power of US households could weigh on their confidence and reinforce the decline in long-term bond yields. Indeed, the 10-year rate continued its slow slide (1.61% versus 1.64%), but after confidence came out much better than expected! The Conference Board index rebounded to 113.8. While…
Crude prices remained supported throughout yesterday, despite builds reported by the API survey in the US. Indeed, crude stocks grew by 2.3 mb, while refined products stocks expanded by 1.5 mb. Interestingly, Cushing continued to draw at a fast pace, 3.7 mb, partly explaining the elevated volatility on WTI time spreads. In Japan, run rates…
European gas prices were mixed yesterday, torn between conflicting fundamentals. On the pipeline supply side, Norwegian flows weakened again, to 311 mm cm/day on average, compared to 322 mm cm/day on Monday. By contrast, Russian flows were higher, to 256 mm cm/day on average, compared to 250 mm cm/day on Monday. Asia JKM prices (+0.41%,…
