The price of Brent 1st-nearby touched $94/b overnight. Saudi Arabia’s price hike for March for its Asian, US and European customers sends a confidence signal to the market that demand is robust. In addition, Vitol believes that China’s low crude stocks can be expected to rebuild now that the holiday season is over. We often focus on the tightness…
The US 10-yTreasury yield is settling above 1.9%, while European long rates continue to rise after last week’s BoE and ECB meetings. Markets are now expecting more than 5 rate hikes from the Fed this year after a much better than expected US job report: more than 400k jobs created in January and wages accelerating to…
The European power spot prices are mixed for today, from 84.68€/MWh in Germany due to pressure from the country’s surging wind output, to 205.50€/MWh in France with support from the falling nuclear availability despite a weaker demand expected today. The carbon prices continued to climb and hit a fresh record high at 97.50€/t on Friday…
The Brent contract change has caused the 1st-nearby to lose nearly $2/b due to the extremely sharp backwardation. It is trading below $89.5/b this morning. Backwardation continues to widen: when comparing the 1-year contract and the 1st Brent contract, it now exceeds $10/b, which has not been seen since 2013. The situation remains extremely tense in…
European power prices tracked losses in natural gas and coal prices on Monday, while EUA prices sent neutral signals. Very strong wind power generation in northwest Europe weighed on spot prices, especially in Germany where they continued to trade much below France where nuclear generation failed to reach the 50 GW mark again notably with…
