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Strong Start Finishes Mixed, But Cycle of Higher Highs Extends

COMMODITIES
  • WTI and Brent crude futures settled lower into the Monday close, however both contracts managed another session of higher highs, keeping the bull cycle in tact for now. WTI crude futures printed another multi-month high at $83.87/bbl, the highest level since late 2014.
  • Concerns over a supply crunch in winter remains the focus for energy markets,with a spokesperson for the German economy ministry today saying Germany's gas reserves have dropped to 70% of capacity from 75% previously -underlining the pressures that many European countries could face in the coming months.
  • The Russian energy minister Novak stated that the country was ready to meet the requirements of increased supply, but no European Union nation has been forthcoming with any request for extra gas.
  • Concerns of a tight European gas market contrasts with that in the US, with NatGas futures off over 4% Monday the latest weather forecasts allay concerns over heating demand. The Commodity Weather Group forecast a milder-than-expected beginning to winter, lasting through to November 1st.
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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