3% drop for oil – In the region of 260 euros for natural gas

- Advertisement -

LAST UPDATE 14:30

The prices of the energy sector show a mild de-escalation today, with oil investors moving hesitantly as the possibility of Iran’s return to the market recedes, while the prices of European natural gas also show a slight decline.

- Advertisement -

In particular, recently oil has been walking a tightrope between the inflationary risks that burden the outlook of the global economy and the eventual reduction in OPEC production, with investors showing that they are more worried than the first and sellers have taken the reins of today’s transactions .

In this climate, the October contract of Brent recedes against 3.7% and trades in 101.2 dollars the barrel, with losses of 3.9 dollars today.

- Advertisement -

Similarly, the November contract of Brent which becomes the most active from tomorrow, also recedes by 2.85% and moves to $99.99 the barrel with daily losses of $2.94.

At the same time, the American WTI October loses 2.9% and is located in $94.15 the barrel, with its price having fallen during the day by approximately $2.86.

Inflation running at double-digit rates in many of the world’s largest economies, levels not seen for half a century, continues to be the focus of attention, with central banks in both the US and Europe preparing to resort to more aggressive rate hikes.

Which risks curbing economic growth, hitting fuel demand.

Prices have been held back in recent days by fears of already tight supply, with Saudi Arabia leaving open the possibility of OPEC+ production cuts.

Which was more about the case of bringing Iran back into the market, a possibility that appears to be receding as Tehran said today that it will not accept “excessive demands” from the UN Atomic Energy Agency (IAEA).

At the same time, the output of Iraq – OPEC’s second largest exporter – has so far not been affected by the political unrest in the country, as the market had feared.

Natural gas is falling

With natural gas prices still falling today, energy costs are showing downward trends in Europe in general.

In particular, the September natural gas contract is trading at a loss 4.8% and its price at 259.5 euros the megawatt hour.

In any case, the pressure exerted by Russia on the energy field in Europe continues unabated, with Gazprom proceeding with a further and immediate reduction of natural gas deliveries to France “due to a disagreement between the parties on the implementation of the contracts”.

At the same time, of course, the European Union is expected to reach its natural gas storage target two months earlier than the target it had set according to Bloomberg, as European reserves were 79.4% full as of August 27, against a target of 80 % until November 1st.

In the wake of the fall in natural gas prices, however, Germany sees the price of electricity for next year having fallen by more than 30% to 610 euros per megawatt hour, from an extraordinary high of 1,050 euros that it had reached intra-session yesterday, Monday .

Source: Capital

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles