A snippet via TD on oil, gas and energy markets more generally:
- "Energy markets are solidifying at the upper end of recent trading ranges as the fear factor and right tail risks become more embedded heading into the winter months that could exacerbate the energy crisis in Europe and Asia."
Cold weather + low inventory + supply bottlenecks + recovering demand. All of these are well known and continue to drive energy markets higher.
TD also linked in the NFP from Friday saying the lower than expected number has lead to "questioning the timing of a well-telegraphed November taper, as well easing some enthusiasm about Fed hikes in 2022". The reasoning being less likely taper/slower hikes is fuel for further rally.
Quite the year for oil:
