Gas prices in Europe continue to go down reaching 109.68 Euros per MWh for December. At the beginning of this week, Dutch TTF Gas futures were down from 123.35 Euros a week before and this is more that 68% lower than peak prices of $349.87 at the end of August. On the storage front, gas storages are filled way above average levels. Belgium is at full capacity, Germany has reached 98% while France is at 99%. More than 30 gas tankers are stationed at ports along Europe’s coastline where they are unloading their cargo while 30 more are on their way to Europe. Large gas deliveries, together with low consumption level during warm months of October and November in Europe, is creating a surplus of gas.
According to EU internal market commissioner Thierry Breton, European nations have agreed on mutual gas purchases to limit gas prices.
Exports and imports in China fell by 0.3% year-on-year and 0.7% y-o-y respectively. They rose in September and during previous months so a decline of trade volumes in China was surprisingly unexpected. This decline is a negative factor for energy prices as it may be interpreted as the beginning of the global recession.
Considering this, October inflation data will probably be of elevated interest. It is expected that inflation in China could decline to 2.4% year-on-year in October from 2.8% in September, while producer prices are estimated to fall deeper to -1.6% from 0.9%. This might be alarming as it could point to a drop of demand in China and possible economic slowdown.
October inflation data in the United States, which will be published this week, will provide some understanding around the Federal Reserve’s (Fed) monetary tightening policy. Consumer prices in October are expected to slow down to 8% from 8.2% a month before, and that is a positive factor for energy prices. The European Central Bank’s (ECB) officials may also add some clarifying notes to the monetary landscape in Europe to paint the picture of future economic developments in the European nations.
Meanwhile, gas prices may continue to go down to test the 95 Euros per MWh landmark. The resistance level is still at the 123 Euros per MWh.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.19% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2023 Teletrade-DJ International Consulting Ltd
This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.19% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.