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Supply Crunch Fears Fade as US, Russia Soothe Market

COMMODITIES
  • Energy prices have eased further Thursday morning, with EU-bound gas futures halving in price off yesterday's all time high. The moves have persisted as the US joined Russia in verbally intervening against high energy prices over the past two days, as the US name-checked the Strategic Petroleum Reserve as a tool to be used to combat high oil prices.
  • As a result, both WTI and Brent crude futures are off around 2% apiece ahead of the NY crossover, fading fast off the cycle high printed yesterday morning.
  • Sell-side analysts view the US' SPR threats as a direct broadside against OPEC+, who had ignored recent US requests to ease production curbs as well as nixing a proposal to front-load production boosts into their November quotas.
  • Gold and silver are more mixed, with gold in very minor positive territory having eased off highs alongside recovering equity markets.

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