Energy: Peace deal hopes fade further – ING
|Oil prices rallied after the German Chancellor Merz said it’s unlikely that Presidents Zelensky and Putin will meet, providing a blow to hopes for a peace deal between Ukraine and Russia. Given the lack of progress since Putin’s summit with President Trump, this isn’t a big surprise. Meanwhile, Russia carried out a fresh wave of deadly attacks on Kyiv, damaging buildings housing the EU mission and the British Council. The lack of progress towards a peace deal means risks of sanctions and secondary tariffs continue to hang over the oil market, ING's commodity experts Ewa Manthey and Warren Patterson note.
European natural gas prices are under pressure
"Insights Global data shows that gasoil inventories in the Amsterdam-Rotterdam-Antwerp (ARA) region increased by 53kt WoW to 2.09mt, the fourth consecutive week of increases. Inventories have now increased by more than 20%. This takes gasoil inventories in the ARA region close to the 5-year average, which should help ease concerns over middle distillate tightness. However, gasoline inventories fell by 54kt WoW to 991kt, extending a trend we’ve seen for much of the year. European gasoline demand in some key markets has been fairly robust for much of this year, contributing to lower stocks. Tighter gasoline stocks are providing some late-season strength to gasoline cracks in NW Europe."
"In Singapore, onshore refined product stocks fell by 346k barrels to 47.54m barrels. Light and middle distillate stocks fell by 1.67m barrels and 366k barrels, respectively, while residual fuel inventories grew 1.69m barrels."
"European natural gas prices came under pressure yesterday, with the Title Transfer Facility (TTF) settling 2.95% lower. This is despite Norwegian gas flows to Europe falling to their lowest level since mid-July amid ongoing maintenance work in Norway. Despite these lower flows, EU storage continues to tick higher, standing at close to 77% full, although this is still below the seasonal 5-year average of 84%."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.