Volatile Week Ends as Europe Considers Method of Market Intervention

Energy Prices (Daily Change)

All prices updated at end of day using CME settlements.

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Despite the 20% pull-back from recent highs, gasoline prices are still pretty steep. These prices already affected the normal peak driving season and now will probably affect the long Labor Day weekend as well.

I hope you all get some rest after a wild week in the energy markets.

I’ll be at home, using my bike and feet as much as possible.

+Pre-Labor Day retail gasoline prices are the highest in the US since 2014 – EIA

Volatility was exacerbated by illiquidity, which has implications for how markets will trade in the near term. Here’s a good look at the forces at play here:

+The oil market is stuck between a rock and a hard place – HFI Research

Macro Energy

The energy markets are in limbo over what exactly EU intervention into both oil and electricity markets will look like. The question is not really an if, just a what.

Here are a take to explain what a cap on Russian oil prices might look like, or just enjoy Blas’ take above.

+How would a G7 price cap on Russian oil work – FT

+Russia to keep Nord Stream pipeline shut, citing mechanical problems – WSJ

+The world Putin wants – Foreign Affairs

Macro Economy

+Stocks reverse gains, as dow ends 338 points lower – WSJ

+Slower pace of US jobs growth offers some relief for the Fed – FT

+The yen’s descent has put Japanese officials on high alert – FT

Energy Transition

The power sector is the tail that’s waving the economic dog. Learn more about the critical power sector with our Power 101 courses.

+How Europe plans to cope as Russia cuts off the gas – Economist

+Portugal could hold an answer for a Europe captive to Russian gas – NYTimes

Other News

+New York’s waters are being reborn – Economist