During the fourth week of August, Brent oil futures for the Front Month on the ICE market remained mostly below $78 per barrel. The lowest settlement price of the week was recorded on Wednesday, August 21, at $76.05 per barrel, marking the lowest level since January 3. Prices then began to rise, reaching a weekly high of $79.02 per barrel on Friday, August 23. However, this peak was still 0.8% lower than the previous Friday’s price.
The decline in Brent oil prices during the week was largely driven by concerns about the global economy. Additionally, ongoing negotiations for a ceasefire in Gaza eased fears about potential supply disruptions, further contributing to the downward pressure. However, expectations of interest rate cuts in the United States later in the week helped push prices higher. Increasing tensions in the Middle East over the weekend may also influence Brent oil prices in the last week of August.
Meanwhile, TTF gas futures for the Front Month on the ICE market remained below €40 per megawatt-hour (MWh) throughout the week. The highest settlement price of the week, €39.84/MWh, was recorded on Monday, August 19. Prices then declined, reaching a weekly low of €36.59/MWh on Thursday, August 22, the lowest level since August 6. By Friday, August 23, prices edged up slightly to €36.86/MWh, although this was still 7.0% lower than the previous Friday’s settlement price.
The decline in TTF gas futures was influenced by high European gas reserve levels, which eased concerns about supply. Additionally, fears about the impact of the ongoing conflict between Russia and Ukraine on gas supply diminished, contributing to the price drop. However, planned maintenance work in Norway, which could affect gas supply from the region, may exert upward pressure on prices in the coming weeks.
As for CO2 emission allowance futures for December 2024 on the EEX market, settlement prices remained above €70 per ton during the fourth week of August. The highest price of the week, €73.14 per ton, was recorded on Monday, August 19, representing a 0.9% increase from the previous Friday and the highest level since early June. Prices then declined, with the weekly low of €71.12 per ton recorded on Friday, August 23, which was 1.9% lower than the previous Friday, AleaSoft reports.
