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    European gas prices continue downward momentum

    By Jenal Mehta


    Updated

    Electricity wires poles after sunset
    Wire Poles – Credit: Shutter Stock

    After an 8-week low, Brent crude oil traded at around $78.9 per barrel on Monday, a slight rebound from $78.5 seen at the end of last week. Oil prices have meandered lower from their mid-October peak. Markets still await a strategic release of oil reserves. Japan may agree to the strategic release of oil as requested by the US, reported Reuters. Future prices under downward pressure, as new COVID-19 virus restrictions dampen demand prospects.

    Recent prices of brent crude oil futures Brent crude oil – Credit: TradingView

    European gas prices dropped almost 2% over the weekend, to just under €82 per megawatt-hour, more than a 10% drop from their peak last week. These prices however still remain in the higher range seen since September, as there is still uncertainty around supply of gas from Russia.

    President Vladimir Putin has said gas supplies from Russia will increase once the NORD Stream 2 pipeline is completed, as reported by Reuters. European gas prices expected to be affected by new lockdown measures in the region.

    Recent prices movements in European gasEuropean gas – Credit: TradingView

    Read more: 3 reasons why oil price may hit $100 this winter: BofA

    Related topics

    #Oil #Natural gas #Commodity

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    The difference between trading assets and CFDs
    The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
    You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
    CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
    CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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