Overheated

As crude prices continued to rally, with ICE Brent crude prices reaching 80 $/b at the prompt, we are starting to see signs that the physical market and prompt pricing are diverging from longer-dated futures. Indeed, ICE Brent prompt time spread weakened to 79 cents yesterday, at odds with the flat price dynamic. Angolan supplies rose as cargoes…

Bond yields continue to rise. China reassures on the housing market

The US 10y yield reached 1.54% this morning, its highest level since June. The market is gradually integrating the prospect of monetary tightening, not only by the Fed, but by all central banks in the relatively near future. The Governor of the Bank of England has not ruled out a possible interest rate rise before…

Strong price increase

European gas prices increased strongly yesterday, supported by ongoing concerns on low stock levels ahead of the winter. The rise in Asia JKM prices (+7.53% on the spot, to €83.738/MWh, +6.36% for the November 2021 contract, to €85.187/MWh) and in parity prices with coal for power generation (both coal and EUA prices were up) provided…

European prices rebounded on higher JKM and coal prices

European gas spot and near curve prices rebounded overall on Friday, as the increase in pipeline supply was offset by the rise in Asia JKM prices (+2.45% on the spot, to €77.876/MWh, +2.79% for the November 2021 contract, to €80.090/MWh) and technical buying. Prices on the far curve increased even more strongly, supported by the…

Unwind week ahead of OPEC+ meeting?

Crude markets continued to be boosted by winter demand expectations, as the ICE Brent November contract reached 79 $/b. The commitment of traders report showed that money-managers increased their net long position by 20 thousand lots, in line with the rally in Dec21/Dec22 spreads, now valued at 7.4 $/b, while the prompt month time spread…

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