We spent the week noting the curious decline in bond yields while the US figures were frankly good. If they rebounded yesterday, it was not thanks to the first estimate of Q3 US GDP growth, which came in below consensus expectations (+2% annualized quarterly change), with inventories making a very large contribution to growth. Nevertheless, the…
Font-month prices in the crude and refined product market dropped sizably, with Dec-21 ICE Brent dropping from 85 $/b to 82 $/b before rebounding on early Thursday. The two drivers likely to explain the correction are diesel cracks continued weakening since Monday and falling US demand reported by the EIA. For diesel cracks, TTF front-month prices corrected to 76…
The power spot prices slightly rebounded in northwestern Europe yesterday, supported by forecasts of easing wind output. Prices however faded in France where the nuclear availability is expected to improve and the power demand to weaken. The day-ahead contracts averaged 176.23€/MWh in Germany, France, Belgium and the Netherlands, +6.39€/MWh day-on-day. The carbon prices started Wednesday…
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…
