No New Year cheer for energy commodities

Negative sentiment towards commodities in general, high stocks, a warm start to winter in the US and renewed fears about the Chinese economy have all contributed to the downward pressure on the prices of energy commodities, with the prices of natural gas, coal and especially oil, all falling sharply. That said, prices have started to stabilise over the last few days supported by hopes of more easing from the ECB and additional stimulus from China. Imminent snow storms in the US may also have contributed to the recent rise in prices.