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Analysts Raise Oil Price Forecasts As Market Tightens

Analysts Raise Oil Price Forecasts As Market Tightens

Oil market analysts continue to…

Wind And Solar Dreams Clashing With Hard Economic Facts

Wind And Solar Dreams Clashing With Hard Economic Facts

The International Energy Agency's optimistic…

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The Unstoppable Rise Of European Power Prices

1. Recession Could Soon Become Reality

- Despite recent attempts to redefine the concept of economic recession, economic data firmly points to the inevitability of one amidst soaring inflation, weakening manufacturing, and generally worsening purchasing power.

- Going back into history, the US economy has always experienced a recession within two years of every quarter when inflation was above 4% and unemployment was below 5%, and even the IMF questioned the narrative of the global economy avoiding one this time around.

- Usually a rock-solid recession litmus test, US Treasury yield curves have inverted and the spread between 2-year and 10-year bond yields hovers around -20 bps, the most inverted since 2000.

- The IMF expects that global growth could slow to 2% next year, a level effectively amounting to a recession given underlying population growth.

2. European Power Prices Go Haywire

- The decommissioning of another turbine at Gazprom’s Portovaya compressor station has brought Nord Stream 1 pipeline gas flows to some 20% of nameplate capacity, sending European gas and power prices soaring.

- Even if the much-talked-about turbine does arrive in Russia, it seems that Gazprom will not be pumping gas at a rate higher than 40%, implying the squeeze will be long-term.

- German power contracts have soared to record highs this week, with the baseload Q4 contract hovering around €475 per MWh, with the year-ahead…

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EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
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