Natural gas extends losses after Gazprom resumes supplies to Italy. Oil maintains an upward trajectory
Oil benefited from the “rise” in prices as investors anticipate the largest cut in crude production, decided by OPEC + (an organization that brings together oil-producing countries and their allies), since 2020.
The group will reduce its capacity by 2 million barrels per day, twice what was initially expected, in a cut that will balance oil prices at a time when the global economy is expected to slow.
“Cutting 2 million barrels per day shows how severely they are affecting prices,” said Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank.
In response, the New York-traded West Texas Intermediate (WTI) is up 9% in total in the past two sessions, topping $86 a barrel. By 08:00 Lisbon time, WTI was on the waterline, adding 0.03% to $86.55.
Brent crude – traded in London and the benchmark for the European market – rose 0.17% to $91.96 a barrel.
In contrast, natural gas (TTF) – which hit July lows in the Amsterdam market yesterday – continued to slow this morning, falling 1.2% to €160 per megawatt-hour.
Raw materials extended declines after Gazprom indicated, early on Wednesday, that it would resume gas shipments to Italy. Gazprom noted on Telegram that the Russian company “managed with Italian buyers to find a solution” after regulatory changes in Austria in September, which impeded the flow of gas to Italy.
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