There remains a plethora of factors that are feeding into volatility across energy markets. Crude oil prices dropped by -6.65% while Brent oil prices slipped -1.65%.
The sharp decline in European natural gas prices – Dutch TTF was down -38.05% on the week while UK natural gas fell by -41.76% – helped alleviate speculation around a short-term supply-demand imbalance, whereby Brent and crude oil would be seen as substitutes in the face of exorbitant prices. The IG Client Sentiment Index suggests that crude oil prices have a mixed trading bias.Ī torrent of conflicting headlines and mixed economic data continue to wreak havoc on global energy markets.Net-long positioning in the oil futures market remains near its yearly low, and its lowest level since August 2016.There are several stories unfolding in the energy space that should keep volatility elevated across energy markets, none of which are likely to find any permanent resolution anytime soon.Weekly Fundamental Crude Oil Price Forecast: Neutral
