Commodity Weekly (October 09 2020)

In this week's edition, we discuss the impact that Hurricane Delta is having on oil & gas prices and try to understand what impact the Trump stimulus package will have.

OPEC is in the news again, this time revising its 2020 – 2045 demand and supply forecast. While it makes for good reading, the $9,900bn investment price tag to maintain the growth in supply they are suggesting is eye-watering. Given the $99bn per quarter requirement today, the oil markets are already behind the investment curve.

Elsewhere, we look at the increasing volatility of natural gas prices and make sense of what it could be telling us. For North American natural gas producers, given the relentless decline in market fundamentals over the last five years, the rising volatility is a portend of better days ahead.