The Biden administration has announced a ban on fossil fuel imports from Russia: oil, gas, coal. The British government has taken the same decision concerning oil only. The EU cannot for the moment follow suit. For Russia, these sanctions concern about 10% of oil exports, but the EU’s share is 60%. However, it is clear…
European gas prices rose to new all-time highs on Friday. Although Russian supply continues to flow (even increasing to 267 mm cm/day on average on Friday, compared to 260 mm cm/day on Thursday), market participants continued to fear disruptions in the near future. Moreover, the announcement that the European Commission will propose this week gas…
The never-ending bullish run of the European power spot prices continued yesterday as the gas market pursued is sharp ascend amid soaring supply concerns while a wind shortage combined with low nuclear availability and stronger demand pushed the prices further up. The day-ahead prices averaged 483.38€/MWh in Germany, France, Belgium and the Netherlands, +74.71€/MWh day-on-day…
Brent 1st-nearby briefly fell back below $120/b yesterday before rising again and now trading above $126/b. The price levels are so high that one gets used to huge intraday swings. All of this reflects the instability of the market and the very high level of uncertainty. The US administration seems very close to declaring an embargo…
Inflation expectations are soaring in Europe. The break-even inflation rate on the 5y5Y (5-year inflation in 5 years) has reached US levels in the euro area. Twelve months ago, it was at half that level. In addition to energy prices, metals and agricultural commodity prices are soaring, and above all, there is every reason to…
