Oil prices climb after Trump introduces new tariffs on steel and aluminum, despite concerns about their impact on global growth. Europe faces a heating crisis as natural gas prices soar due to forecasts of cold weather and dwindling gas reserves.
Oil prices surged following President Donald Trump's imposition of new tariffs on steel and aluminum, despite concerns about their potential to disrupt global economic growth. Europe 's TTF natural gas benchmark reached 59 euros per megawatt-hour ($19.50 per mmBtu), the highest level since February 2023, after experiencing four consecutive weeks of gains.
This recent price spike was fueled by meteorologists' predictions of below-zero Celsius temperatures in Northwest Europe next week, the lowest in a year. A shift in the Arctic Oscillation pattern is expected to trap Arctic air over the continent. The anticipated colder winter is projected to increase gas consumption across Europe by 17% this month compared to the previous year. EU gas inventories are rapidly depleting, currently standing at only 48% full. The euro's weakness against the US dollar (EUR/USD trading at 1.03) is exacerbating the economic impact of panic LNG buying. The pace of LNG imports to Europe in February is already 20% higher than January's average rate of 380,000 tonnes of LNG per day. Several noteworthy market developments have emerged: US oil giant ExxonMobil is reportedly considering a $8.6 billion petrochemical project in Port Lavaca, Texas, involving a steam cracker and polyethylene production units. London-based mining giant Anglo American is moving closer to spinning off its diamond unit, De Beers, as the government of Botswana confirmed its interest in increasing its stake in the company from the current 15%. Brazil's leading independent upstream firm Prio is reportedly looking to acquire Equinor's 60% stake in the offshore Peregrino field, valued at approximately $3 billion, although the company has denied any ongoing negotiations.
Energy OIL PRICES TRUMP TARIFFS ENERGY CRISIS EUROPE NATURAL GAS ECONOMIC GROWTH
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