Henry hub natural gas extended declines yesterday after the US reported above-average natural gas inventory injections over the last week. Total gas stockpiles remain above the five-year average, weighing on sentiment
The ongoing war in Russia has counterintuitively been one of the most significant bearish catalysts in the black gold– Russia floods the market of Oil to countries like India to sponsor its war, prompting threats from Trump.
Wall Street's main indexes slipped on Monday as the US session got into gear. Market participants are bracing for a busy week which includes US inflation data and major geopolitical developments.
At the time of writing the S&P 500 was down 0.15% while the DOW was down as much as 0.54%, weighed down largely by industrial stocks, with the sector down 1.6% on the day.
The energy commodity hasn't had its best performance this year. Oil got caught in the mix of many geopolitical headwinds between large supply from OPEC+ for internal reorganization (they want to force out some producing countries of the organization), Russia flooding the Market to pay for its war, downward revised global outlooks and tensions in the Middle East.
“When the path is uncertain you go a little bit slower” – Chair Powell. The expectation is for the Fed to leave their policy rates unchanged at 4.25-4.50%. To us, uncertainty around the macro environment and politics will likely equate to little changes to the Fed’s forward guidance. Powell will likely want to keep all the options open.
