market in Europe was on alarm recently as prices for July 2022 Dutch TTF gas
futures jumped to 133 Euros per MW last Friday. Prices scaled back to 129 Euros
on Tuesday, but they are unlikely to reach a deeper correction.
surged as Russia significantly reduced gas supplies to Europe during the period
when gas was being replenished into gas storages in preparation for the coming winter
season. Storages are reported to be filled by 59% of their total capacity,
which is a low percentage for this time of the year.
Europe is beginning
to suffer from the physical shortage of gas. There are many reasons for this
that supplement each other. The Freeport LNG Quintana Island liquefaction facility is currently shut down after a gas
blast and will not continue its full operation until late 2022. This facility
exports around 20% of LNG from the United States that primarily goes to Europe.
Gas exports via the North Stream pipeline to Germany have been dramatically
cut by 100 million cubic meters per day or 60% of the regular supply.
Lead is a
toxic metal for humans by its nature. And it seems that now it is also toxic
for investments as its price dropped by 3% on the London Metal Exchange this
Monday, from $2150 to $2087 per tonne.
It is a
production metal that is sensitive to economic growth perspectives and, as
such, its price significantly dropped at
the beginning of the week after the United States was hit by a huge
inflationary shock. Consumer prices rose unexpectedly by 8.6% year-on-year in
May after posting 8.3% in April.
Dutch TTF July
22 gas futures soared above 93 Euros per 1 MWh, an important psychological
resistance level, and hit 95 Euros on Tuesday morning. This may indicate that
prices may surge further.
surged after European leaders agreed in principle to cut about 90% of oil
imports from Russia by the end of 2022 raising Brent crude prices above $120
per barrel. Gas is an alternate fuel and its prices followed oil quotes.
two major abilities. One is that it is traditionally considered to be a safe
haven asset that is in high demand during times of elevated risks in the
market, rising inflation, and geopolitical uncertainties. The second is that it
acts as an anti-dollar indication because gold prices mostly move in the
opposite direction to the Dollar. The Dollar itself has become a safe haven
asset in recent months as the Federal Reserve (Fed) has risen interest rates along
with Treasuries yields. So, gold prices are now more correlated with the
had a dramatic start to the week as prices plummeted by 13% to $2061 per ounce
on Monday. Prices were at $2500-2530 in the middle of April. Fears over
unprecedented pandemic lockdowns in China caused demand for industrial metals,
including palladium, to dive. Falling equities and other risky assets has contributed
to the decline, along with the expected tightening of the monetary policy of
the Federal Reserve (Fed), that is expected to announce another sharp interest
rate hike next week and may continue to do so after every meeting this year.
some correction of the U.S. Dollar index from 101 to 100 points, more factors seem
to be pointing towards the further strengthening of the Greenback rather than
for its decline, and the recent drop may be rather distinguished as a
correction to the upward trend.
for a steeper angle of interest rate hikes by the Federal Reserve (Fed).
Investors are considering the 96% probability of a 50 basic point interest rate
hike from 0.5% to 1.0% to be announced the May 5 meeting.
Tin prices are
strongly correlated with the global economic recovery and financial risks that
depend on monetary policy of the leading central banks. After a phenomenal
upside exaggerated by the military warfare in Ukraine to $49,400 per tonne in
early March, an impressive correction followed.
have stabilised after the initial shock of the Russia-Ukraine clash has
subsided and the Federal Reserve (Fed) hiked its interest rates for the first
time in four years.
of Russian gas through the Gas Transmission System (GTS) of Ukraine has not
been disrupted despite war actions across almost the entire Ukrainian
territory, according to the Gas Transmission System Operator of Ukraine. Gas
supplies are continuing to be carried out as normal in line with the existing reserved
amount held by European clients. Russia’s energy corporation Gazprom pumped 107
million cubic m of gas via Ukrainian GTS on February 27. This amount has been confirmed
by both the Ukrainian side and Gazprom.
nickel prices have been posting new records “nickeling” themselves from
possible “corrosion” or decline. Prices of this metal surged to a record high
in a decade above $25,000 per tonne. The rally continued on Tuesday after the trading
session opened with a gap of $25,370 per tonne.
market-driven, and political factors are also pushing prices to the top.