Prices slightly down on profit taking
European gas prices weakened slightly on Friday, torn between the impacts of ongoing tight fundamentals and profit taking after the previous sessions’ strong gains. Indeed,…
The EIA confirmed a decline in commercial crude stocks of about 6.7 mb, maintaining September delivery ICE Brent contracts at elevated levels, 74.5 $/b. There is increasing uncertainty around the OPEC meeting today as the Russian and Saudi delegations’ opinions diverge. We still believe they will deliver a 500 kb/d production increase. If that does not materialize, we think prices will remain at current levels, as the current financial length in futures contracts is already elevated.
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