Showing posts from January 22, 2023

The catalyst that boosted the crude oil markets last week: Chinese Spring Festival

  The investors of the crude oil markets managed to breathe a sigh of relief last week as the prices of the two benchmarks, WTI and Brent, remained fairly static, despite the unfavourable headwinds that blow across the markets.  The price of LNG, liquified natural gas, for instance, fell sharply and shows no sign of recovery, as the warmer weather prevails in the northern hemisphere, with just a month left before the end of winter. In addition, the US crude stocks keeps building, reflecting a weak demand. The hemorrhage of jobs in their thousands in the technological sector, meanwhile,  hardly helps counteracting the negative sentiment. Against this backdrop, analysts attribute the positive sentiment that we saw last week to the perceived high economic activities in China.  The Chinese are celebrating their Spring Festival , also known as the Chinese New Year , the most important cultural event that dates back to the ancient times in full gear. They welcome the arrival of spring at the

European Gas Prices Plummet.....

  With the end of the winter just 4 week away, the gas prices in Europe did not skyrocket as anticipated by both investors and analysts - and feared - by the ruling elite. On the contrary, they have not just been falling, but plummeting. The price of gas that already had lost 50% from its peak last year, fell by 11% on Tuesday as the markets opened for business. A fall of this magnitude that does not translate automatically to drop in domestic or industrial scale bills, can put further pressure on politicians to act on behalf of the consumers and of course, small-to- medium scale businesses.  It is clear that the energy companies are entirely not to be blamed on the high energy prices, because the data supports the fact that their profit margin remains around 19% with the government taxes accounting for big chunk as far as oil prices are concerned. The OPEC displayed the data to show the latent money 'trail' : There are a few key factors behind the fall of natural gas - LNG - p

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