Investors pulled their money out of risky assets in the last two weeks, due to the US credit rating downgrade which has sent bearish signals to crude oil markets. This is according to npower Optimisation Desk Manager, Magali Hodgson.
She told ELN: “Front month brent lost nearly $9 across the week, moving from $118/bbl to $109/bbl. This put bearish pressure on the UK power and gas curves.”
According to Ms Hodgson, the debt crisis looming over the Euro-zone can’t be ignored and will continue to be bearish.
She added: “The outlook for the next couple of weeks is flat to bearish for the prompt. The maintenance season is coming to an end and demand is set to stay low, however reduced LNG cargos delivery could lend some support.”