Profit taking in the equity markets yesterday, particularly in the wake of the anti-Covid measures taken in the UK, reminded everyone that the fact that the Omicron variant is not very aggressive in the first place would not prevent negative economic consequences in the short term. The fact that it is also highly contagious may also…
ICE Brent front-month contract trades now above 76 $/b, combined with an unusual worsening backwardation, below 30 cents at the prompt. The recovery in equity markets and declining volatility is boosting outright prices. Yesterday, the EIA showed a higher than average seasonal build in US refined products stocks, with implied diesel and jet demand experiencing sharp…
The power spot prices rebounded yesterday in northwestern Europe, buoyed by forecasts of colder temperatures and dropping wind output. The day-ahead prices averaged 280.23€/MWh in France, Germany, Belgium and the Netherlands, +73.70€/MWh day-on-day. The EUAs extended their massive rally on Wednesday as option trading and speculators continued to drive the market up towards 100€/t while…
European gas prices extended gains yesterday as the sharp drop in Norwegian supply tightened gas balances even more. Indeed, due to an unplanned outage at the giant Troll field, Norwegian flows dropped to 293 mm cm/day on average yesterday, compared to 350 mm cm/day on Tuesday. Russian supply was stable, at 280 mm cm/day on…
Governments continue to take measures both to limit the spread of the variant Delta, which is putting real pressure on hospital occupancy, and to prevent the spread of the variant Omicron, the latest being the UK government’s recommendation to work at home, wear a mask and have a vaccine passport for access to places where people…
