Today's Saxo Market Call podcast
Global Market Quick Take: Europe
Special Edition Podcast: A Deep Dive into Energy Markets
The energy sector, excluding natural gas, has rising strongly this quarter with sentiment experiencing a major positive turnaround as aggressive voluntary production cuts from Saudi Arabia continues to tighten the market. In addition, concerns about the global economic outlook have yet to impact demand in any meaningful way, and together these two developments have seen WTI and Brent reach four-month highs.
Just like last year, when prices shot higher following the Russian invasion of Ukraine, the rally has been led by tight diesel markets which have sent prices for gas oil futures in London and Ultra-light Sulphur Diesel (ULSD) in New York surging to $123 and $131 dollars per barrel, the highest levels since January. In WTI crude oil, the premium the prompt futures contract, currently CLU3, commands over the next has reach a November high around 70 cents, and the tightness or backwardation of this magnitude has been adding to the bullish sentiment.