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Europe-Bound Gas Prices Extend Further

COMMODITIES
  • Europe-bound gas prices remain well bid, and are revisiting levels not seen since the supply crunch in October as traders eye possible delays to Russia's Nordstream 2 pipeline. Yesterday, Germany's energy regulator paused the certification process for the fuel line, waiting for the completion of certain legal contracts before progress can resume. The halt came despite Russia's insistence that the pipeline is ready to meet all criteria and gas is ready flow "as soon as possible".
  • The WTI futures curve trades slightly flatter, with front-month contracts edging off recent highs. Markets eye speculation that the US and China could coordinate on a reserves release should fuel prices continue to surge, with the Xi-Biden call earlier in the week highlighting the need to work together on energy markets.
  • WTI futures remain below recent highs and above support. Key resistance and the bull trigger is $85.41, Oct 25 high. A break of this hurdle is required to confirm a resumption of the uptrend and resume the bullish price sequence of higher highs and higher lows.
  • Gold rallied sharply higher last week resulting in a clear break of resistance at $1834.0, Sep 3 high. The breach of this hurdle reinforces current bullish conditions and paves the way for further strength near-term.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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