During the week of August 5, Brent oil futures for the Front Month on the ICE market remained relatively stable compared to the previous week. The week started with a continued decline, reaching the lowest settlement price of $76.30 per barrel on Monday, August 5, the lowest since January 8 of this year. However, prices rebounded from Tuesday, August 6, rising for four consecutive days to a weekly high of $79.66 per barrel on Friday, August 9, marking a 3.7% increase from the previous Friday. Despite this recovery, the weekly average price was still 1.4% lower than the previous week.
On the first day of the second week of August, Brent oil prices resumed their downward trend due to concerns over a potential recession in the United States and declining demand for crude oil from China. However, rising fears of conflict escalation in North Africa and the Middle East, a 20% drop in production at Libya’s largest oilfield, Sharara, and positive US jobless claims data, which suggested continued economic growth, led to a rebound in Brent oil futures prices by the end of the week.
TTF gas futures on the ICE market for the Front Month continued their upward trend from the previous week, with a significant increase in prices during the second week of August. The weekly average settlement price rose by 7.1% compared to the previous week. The lowest price of €35.50/MWh was recorded on Monday, August 5, but prices climbed daily, reaching a peak of €40.40/MWh on Friday, August 9, a 10% increase from the previous Friday. This was the highest settlement price since December 2, 2023. The escalation of fighting between Ukraine and Russia near critical gas storage and supply facilities, along with Norwegian gas exports nearing full capacity and low LNG import levels at European terminals, contributed to the rise in gas prices.
CO2 emission allowance futures on the EEX market for the December 2024 contract also saw a general increase during the second week of August. The weekly average settlement price was 0.6% higher than the previous week. The lowest price of the week, €68.73 per ton, was recorded on Monday, August 5, a 2.6% drop from the last session of the previous week. Prices rose steadily until Thursday, August 8, reaching €71.06 per ton, before slightly declining to €70.14 per ton on Friday, August 9, which was 0.6% lower than the previous Friday, AleaSoft reports.
