ICE Brent futures were boosted late in the previous session (reaching 77.4 $/b on early Friday) by a jump in inflation expectations, which led to a sharp rally in US treasury yields and equity markets. Indeed, 10-years Treasury yields reached 1.44%, a 13 basis point jump in the span of hours. Buying interest on the WTI and…
Although still largely uncoupled, the power spot prices rebounded yesterday amid forecasts of declining wind and solar output offsetting the expectations of weaker power demand for today and the fading clean gas costs. The German day-ahead prices climbed back above 100€/MWh to reach 108.98€/MWh (+35.82€/MWh day-on-day) while the contracts averaged 152.88€/MWh, +15.56€/MWh from the previous…
European gas spot and near curve prices continued to weaken yesterday, pressured once again by the drop in Asia JKM prices (-2.66% on the spot, to €76.018/MWh, -1.07% for the November 2021 contract, to €77.919/MWh) and profit taking. Prices on the far curve were more resilient, supported by the rise in parity prices with coal…
Rising equities, the second biggest rise of the year in bond yields and a falling dollar seem to suggest that it was more optimism about global growth (fuelled by continued strong PMI surveys in both Europe and the US) rather than just fear of inflation that dominated yesterday. However, these moves come just after Fed members came…
ICE Brent crude prices continued to rise, reaching, 76.4 $/b on early Thursday, amid drawing inventories in the US and despite a rise of the US dollar, in light of the Fed’s increasingly hawkish stance during yesterday’s FOMC announcements. Indeed, fed members are now evenly split between 1 and 2 interest rate hikes for 2022. US petroleum stocks…
