Do you have the stomach to short Crude Oil in the midst of this momentum?
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Actionable thoughts from some EU countries to intervene in energy markets have highlighted the complexity facing an EU summit this week as members seek to respond to record prices driven by the war in Europe. The 27 EU-member states incidentally are responsible for their own national energy policies. It exacerbates the process of decision making and the Commission's task of formulating a plan as it balances the goals of cutting reliance on Russian energy, limiting economic pain and not losing sight of its green ambitions. Some countries have already imposed price caps, with France freezing domestic gas prices last year by compensating gas companies for selling below higher spot prices. Greece has separately proposed a cap on European gas prices, the main driver of high electricity costs. Those opposed to intervening in energy markets and the proposed price caps include bigger consuming nations like Germany and the Netherlands. The cost surge has been exacerbated by Russia's invasion of Ukraine, which it began on Feb. 24. It prompted the EU to hastily draft plans to cut reliance on Russia, which supplies around 40% of the bloc's gas.
At Tradeguidance, we still see Oil prices making their way lower as they had begun to do in the ON session right off the European open. Here is a trade idea for the short term participant in the energy futures markets.
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