Three days before the crucial midterm elections in the United States, oil prices are heading toward their fourth consecutive monthly gain, and investors are bracing for a possible escalation following the election results.
“I believe that, after the first five weeks of the war, the next specific milestone was the U.S. midterm elections, which do indeed appear to be a turning point. Therefore, I believe that a large portion of positions has shifted to long positions, in anticipation of developments around that date.”
Naveen Das – Kpler Analyst
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The trading price of Brent crude is above $113 per barrel and that of U.S. crude is at $104.
Just a week ago, the price approached $120, sending December Brent crude futures soaring to nearly $118 per barrel.
On a monthly basis, October closed with Brent up 13.6%, while WTI rose 15.2%.
“Economic pressure is paying off, as evidenced by Iran’s return to the negotiating table. Most importantly, however, the proposals they are putting forward appear to aim at resuming trade through the Strait of Hormuz within a very short timeframe of five or seven days, which constitutes an amendment to the Memorandum of Understanding.”
Naveen Das – Kpler Analyst
Europe Is Walking a Tightrope
European households appear to be buckling under unchecked price hikes, and the pan-European protests served as a wake-up call at the latest meeting of energy ministers.
“I also look forward with interest to the positions of the Commissioner and the member states regarding energy affordability—that is, what we can do for our citizens, both in the short and long term—an area in which network charges and the network package play a decisive role.”
Darragh O’Brien – Irish Energy Minister
“We have exhausted most of our short-term options. What remains is, essentially, crisis management.”
Politico – European energy official
Member states have so far spent 18 billion just on energy tax cuts, but the ineffectiveness of these measures is forcing the Union to consider resorting to new, targeted emergency measures. The discussion will continue at the Eurogroup meeting the Monday after next and at the summit on November 26.
On a strange note
Public outcry appears to have put pressure on the Cypriot market as well.
Amid international price hikes, prices at Cypriot gas stations have seen an unexpected drop.
“There has indeed been a decrease over the last fifteen days or so. The reason for this is puzzling to us at the association as well, because based on the simple data we have at our disposal, these decreases should not be occurring. We, too, are wondering why these decreases are occurring.”
Marios Drousiotis – President of the Pan-Cyprian Consumers’ Association
On October 10, the price of 95 octane gasoline was 1.758.
Diesel was 2.021.
And heating oil was 1.679.
On October 30:
95 octane gasoline recorded a decrease of 0.034 and stood at 1.724.
Diesel fuel was down 0.018, at an average price of 2.003.
Heating oil fell by 0.086 to 1,593.
The issue, however, is that when prices at the pumps actually drop, this should happen at the same rate.
Meanwhile, the price monitoring service has been down since yesterday afternoon.
Watch the report by Kleio Vourkou:
