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Downhill from here

After a blistering rally for much of 2021, we expect the prices of energy commodities to be easing back as we move into 2022. Oil supply, particularly from OPEC+, is set to rebound strongly over the next year, which will be a factor weighing on oil prices. Elsewhere, demand for natural gas and coal in power generation has been boosted this year by extreme weather events, which suggests it will fall back if temperatures normalise. Supply of natural gas should also pick up in 2022, which should add to downwards pressure on prices. At the same time, ongoing efforts to decarbonise should weigh on global demand for coal and its price.

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