WTI Drops Below $100 As Recession Fears Grow

Despite serious supply problems in the market, oil prices crashed on Tuesday morning due to renewed recession fears and the prospect of demand destruction.

Whilst most of 2022 could only be characterized as a period of hardship for Europe’s embattled industries, things are about to get even worse as Russian pipeline supply falls and power prices across the continent soared. 

- Day-ahead prices in Italy and France have soared above €400 per MWh, with Germany trending slightly lower – attesting to the tightness, annual 2023 forward prices are only marginally lower than the current pricing range.

- Despite its gas-focused power generators struggling, with main sufferer Uniper (ETR:UN01) losing some 60% of its stock value since the beginning of June, Germany is still reticent about its plans to declare a gas emergency.