Oil commentary - 7 October 2021
Morning all.?Brent is trading this morning at $80.71 down 0.37 and WTi is trading down 0.74 at $76.69.?"Here he comes to save the dayyyy, Mighty Vlad is on the way".?Probably riding in bare chested on a bear, "bear chested".?Gas crisis??What gas crisis??"Only joking lads, here have some more gas".?For the uninitiated, the song is from "Mighty Mouse", a popular cartoon from my childhood and I am referring to Vladimir Putin who suddenly decided that most of Europe can have some more gas.?I men talk about leverage, wowwww.?Or to put it politically, something I'm not very good at, “Let’s think through the potential increase of supply on the market, only we need to do it carefully,” Putin said.?God.?Why do I find that scary??You remember when you were a teenager??You'd just finished watching Mighty Mouse and you wanted to ask your Mum if you could go out to the park.?At night.?Gulp.?"Let's sit down and talk about that, shall we son?".?That'll be a no then.?Look, joking aside, something needed to happen, and we cannot kid ourselves that it was going to take intervention from someone like a Gazprom in order to bring things under some form of control.?We aren't there yet but the panic may have waned from the market, and this certainly reflected in prices on ICE NBP gas last night, falling 10pct.?Of course, this dragged down the oil complex because with gas prices surging even Greta was scrambling around for some fuel oil so that she could plot her next UN meeting and accuse everyone of blah blah blah blahhing.?Actually, there's a bar on Jumeirah Beach called Blah Blah - maybe the next venue for Greta to get involved in??Anywayyyy, back to other nonsense.?Yes, energy has been front and centre of most news agencies front pages recently and is this a good thing??I'd argue no.?Oil stocks in the USA increased for a second week last week and, as I mention above, with a potential mitigant on the EU gas supply crisis on the horizon we could see a correction in prices across the oily board over the coming days.?Good day.