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Losses of more than 1.5% for oil – In the region of 250 euros for natural gas

Losses of more than 1.5% for oil – In the region of 250 euros for natural gas

The prices in the energy sector show a mild de-escalation, with oil investors moving hesitantly due to fears of a worsening of the global economy, while the prices of European natural gas also show a slight decline.

In particular, with oil walking a tightrope between inflationary risks weighing on the outlook for the global economy and a potential OPEC production cut, investors appear to be more concerned than the former with sellers taking the reins of today’s trading.

In this climate, the October contract of Brent recedes against 1.8% and trades in 101.1 dollars the barrel, with losses of 1.8 dollars.

Similarly, the American WTI October also loses 1.6% and moves to $95.4 the barrel, with its price having fallen within the day by about 1.65 dollars.

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.

However, the fall in prices is significantly limited by fears of already limited supply, with Saudi Arabia having left open the possibility of OPEC+ production cuts.

Something, of course, that focuses more on the case of Iran’s return to the market if the agreement on Tehran’s nuclear program is revived.

Elsewhere, on a more immediate level, the output of Iraq – OPEC’s second-largest exporter – has not been affected by political unrest in the country for now, 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 7.5% and its price at 252 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



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