THE WEEKS THAT WERE……….
Say hello to 2015 boys and girls. What presents did Santa bring down the chimney since last we spoke? The answer friends, is a sackful of coal and a big ol’ barrel of oil going cheap. Yup, the children of Moscow, Riyadh, Caraccas, Luanda, Baghdad and Tehran had a pretty ropey Christmas all up – the stockings might have been out but the paltry sub $55/bbl oil prices aren’t suggestive of Christmas largesse on behalf of the oil exporting national govt’s of the world. Throw in a mini collapse in the coal price and energy commodities and their derivatives – including UK power and gas – saw a pretty volatile holiday season that started with the bulls still in the fight but ended this week with the bears driving prices down so aggressively the bulls would have got a nose bleed.
And what of the rest of the world oh ghost of Christmas future? Well the Eurozone is flirting precariously with deflation (exacerbated by oil), Greece is thinking the unthinkable (defaulting) and some of the US numbers are suggesting a slow down. Gas and electricity across the curve have shed value and are well worth looking at. Happy New Year one and all.