Energy Market Analysis
The week that was…
This week can be seen as a European entree, in the form of a €1 trillion virtual printing exercise, to a potentially unappetising dollop of Souvlaki as a main dish that the Greeks are likely to dish out to the markets once their polls close. Whilst the ECB’s decision is likely to alleviate concerns around European deflation (and therefore stagnation and low to no growth) in the short term it comes at a heavy political price. The fact that the Germans have insisted national banks bear the brunt of their own banks bond buying brings into question exactly how much of a monetary “all for one one for all” union this actually is. The effect of the way this has been done is to insulate German Taxpayers from bailing out other countries – at least in theory. The one thing the ECB printing money has definitely done is weaken the Euro which means gas from the continent is cheaper for us now than it was before the announcement.
If Syriza wins enough of a mandate in the Greek elections today then all sorts of nasty problems might materialise including a greek default and a theoretical Grexit. That probably won’t be allowed – but it won’t be a great omen for Europe either. Weather is looking seasonally balmy early February so no obvious bullish drivers there. As for oil, the King is dead, long live the king. As you were gentlemen!
This is just a snippet of our full energy market analysis of the week that was. If you want the full Energy Market Report – Week Four 2015 please email email@example.com.