Free Trial

Energy Prices Sink as Lockdowns Crimp Demand

COMMODITIES
  • WTI and Brent crude futures are well offered in early Friday trade, with prices lower by over 2.5% apiece. Risk sentiment has soured across global asset markets, with equities, commodities and yields all lower headed into the NY crossover.
  • European lockdown headlines were the catalyst, with Austria re-instating pandemic measures for both the vaccinated and unvaccinated populations. This was compounded by a parallel statement from the German health minister, who warned that a lockdown cannot be ruled out for Germany.
  • Following the test of the 50-dma earlier this week, WTI has confirmed a break lower, with prices retreating to levels not seen since early October. The front-end of the WTI futures curve trades flatter in sympathy.
  • Gold prices have benefited from the risk-off. Recent gains and a clear break of resistance at $1834.0, Sep 3 high reinforces current bullish conditions and paves the way for further strength near-term. Note too that gold has also breached $1863.3, 76.4% of the Jun - Aug sell-off. The focus is on $1877.7 next, Jun 14 high and $1903.8, Jun 8 high.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.