Flat In Asia After Sharp Gains

Crude futures broadly flat heading into European trade. WTI and Brent crude futures traded higher still Monday, with WTI striking a new cycle high and showing above the $82/bbl mark for the first time since late 2014. Further strength came as markets continue to position for tight supplies across winter, with increasing evidence that oil is benefiting as a substitute for very expensive natural gas.

• The curve has steepened further, with the most notable price rises on Monday in the front- and second-month futures contracts. Upside targets are bumped higher to the 1.746 projection of the Aug 23 - Sep 2 - Sep 9 price swing at $82.89/bbl.
• There are increasing signs of official involvement in energy prices, with the UK's Business Minister Kwarteng submitting a formal bid for assistance for industries hit by high prices. Similarly, a White House official said they stand by calls to OPEC+ to do more in order to support the global economic recovery, adding that they have communicated this to several OPEC+ members at a senior level.