The TTF gas price reached its highest level in eight months. Increased demand for gas – from Asia as well as Europe – combined with geopolitical tensions in the Middle East and Russia-Ukraine have pushed the gas price to the upper end of the range. While geopolitics appears to be a key driver for global gas markets, it is different for oil prices.
Although oil prices are also always sensitive to geopolitical tensions, this time seems different. With oil, the market’s focus is mainly on the demand side. Following disappointing Chinese and US economic data, market expectations regarding oil demand growth are declining ever so slightly. As a result, oil prices are showing lower tops, something that reflects neutral to even negative sentiment.