The temporary deal on the US debt ceiling also gives the Democrats time to agree on the stimulus packages that the Biden administration wants to push through. This may explain why the markets reacted so favourably to the lifting of a risk they never really took seriously (a US default). The sharp rebound in China’s services PMI in…
Diesel cracks are soaring globally, which may indicate that there is stronger demand, partly due to oil-to-gas switch and a recovery in aviation demand that reduces diesel supply. Yet, the strength in cracks, the main profitability indicator for refining economics in Europe, are now almost exclusively driven by natural gas prices, as evidenced by intraday prices. …
The European power spot prices spiked to record levels near 300€/MWh yesterday, driven up by the morning hefty surge of fuels prices and forecasts of wind shortage and stronger demand for today. The day-ahead prices averaged 301.48€/MWh in Germany, France, Belgium and the Netherlands, +118.94€/MWh day-on-day. The EUAs collapsed by a massive 5.6€/t (-8.7%) on…
After a very volatile session (see our news), European gas prices closed lower yesterday, in line with the sharp drop in coal parity prices. Asia JKM prices on their side closed in a mixed way: +42.35%, to €165.665/MWh, on the spot; -8.76%, to €115.111/MWh, for the December 2021 contract. Norwegian flows were almost stable, averaging…
The strong easing of gas and oil prices has allowed a slight easing of long rates. In addition, the fear of a US default is receding in the short term as both Republicans and Democrats seem ready to raise the debt ceiling until the end of the year. The debates on the Biden plans (infrastructure on the one…
