Today, the OPEC ministerial meeting will be held in Vienna. We expect OPEC members to stick to their production policy and increase targeted group-wide production by 0.4 mb/d. While the political pressure is mounting for Saudi Arabia – the historical partner of the US in the Middle East – there are good reasons for maintaining a cautious approach…
European gas prices continued their rebound yesterday, posting strong gains as they got support from the rise in Asia JKM prices (+7.15%, to €82.262/MWh, on the spot; +6.03%, to €96.266/MWh, for the December 2021 contract) and in parity prices with coal for power generation (thanks to the strong rise in API2 coal prices). They ignored…
The European power spot prices faded further yesterday, weighted by forecasts of rising wind and hydro generation, although the stronger power demand expected today might have limited the losses. The day-ahead prices averaged 175.65€/MWh in Germany, France, Belgium and the Netherlands, -10.30€/t day-on-day. Buoyed by the rising gas prices amid low Russian supply, the carbon…
Unsurprisingly, the Fed announced yesterday the start of the reduction of its asset purchases. We already commented on this decision last night (here). Since then, it is confirmed that the markets have welcomed it, with the US main stock market indices reaching new records. The yield curve has steepened a bit (bond yields have risen more…
Amid unchanged fundamentals, European gas prices rebounded yesterday, supported by technical buying after the previous sessions’ strong losses. Asia JKM prices (-7.74%, to €76.771/MWh, on the spot; +5.74%, to €90.793/MWh, for the December 2021 contract) and parity prices with coal for power generation (up as both coal and EUA prices were higher) sent mixed signals.…
