Showing posts from January 1, 2023

Epic fall of Gas Price in Europe and the Inevitable Impact on the Oil Price

  The price of natural gas, LNG, has fallen more than 50% from its peak, when Russia invaded Ukraine. The unprecedented plummeting in price of the commodity has left both investors and analysts in a state of bewilderment, when they anticipated the polar opposite, especially at the height of winter season in the northern hemisphere. In response, the prices of crude oil have been falling as well in the New Year; as of 15:00 GMT, the price of WTI and Brent futures stood at $74.88 and $79.89 respectively; the price of LNG was at $4.06 , recording more than 50% drop since its peak. Of course, the temperatures in the New Year so far have been very mild with mercury staying at double digits. With more than two months to go before the end of winter, things can still change, especially in February, though. Since the process of forecasting the temperatures more than a few days ahead is no better than that of predicting the commodity prices in a similar period, despite the advent of AI - and endl

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