EU Gas Price Cap Could Create Financial Challenges
January 23, 2023
Reuters reports the European Union’s gas price cap on natural gas, which launches next month, could impact financial stability and potentially curb liquidity in Europe’s exchange-traded gas markets according to a draft statement from the bloc’s financial market regulators. The coming price cap, and others on refined fuel products, is supporting prices.
Baker Hughes reports that ten oil rigs came offline last week. This puts the number of total oil rigs down to 613. That is a big one week drop.
Some analysts continue to think that the Fed may slow interest rate hikes. This, along with a falling dollar, is supportive to energy prices.
Traders said China’s Unipec has swept up low priced supplies of crude from Abu Dhabi, Brazil and the United States, taking advantage of a decline in super tanker freight rates and spot prices in a well-supplied market.
On Friday, the market continued its upward trend with support from a stronger outlook for an economic rebound in China, and with it, fuel demand following the lifting of the COVID-19 restrictions.