Energy prices are brought to the parallel developments of the last days in Ukrainian and trade war USA – China.
The US White House announcements on an upcoming agreement with China calmed international markets, once again overturning estimates of international trade and production.
At the same time, negotiations on Ukraine reduce geopolitical danger, as is the ceasefire between India and Pakistan. In this way, premium insecurity in energy prices is resulted in, but it was still limited, as markets no longer react to such developments as in earlier years. Thus, the end result of the above developments has been positive for prices.
On Monday, crude oil rose significantly. The Brent contract for Europe climbed to $ 66/barrels and the corresponding US WTI at $ 63. There had been a fall of both levels of less than $ 60.
These are good news for producers in the US and OPEC. In the first case, new shale drilling is estimated to need a value of more than $ 60 to be viable. OPEC has recently released production goals and now benefits from better prices along with increased quantities.
The European gas price was followed by the TTF contract reaching 36 euros/MWh. This happens at a time when European gas warehouses are again filled with satisfactory pace in the following winter.
Damaged, of course, will be the final consumer, who in recent months has succeeded in seeing low prices on the pump and electricity account. Now, in view of the summer season, the trend is clearly upwards and the continuity remains to be seen.