RJN News and Press, AB Svensk Ekportkredit ELEMENTS Linked to the Rogers International Commodity Index - Energy Total Return Structured Product From 09/14/22

Summary Oil prices have seen three straight months of price declines and are down more than 30% from their relative high in June, but energy stocks have been relatively resilient, particularly MLPs. Much of the weakness in oil prices has been driven by demand concerns related to t...

Summary Citing economic sanctions imposed by the West, Russia has closed the taps to its Nord Stream 1 pipeline, throwing Europe into its biggest energy crisis in decades. European countries may be forced to ration gas, which will impede market forces from destroying demand natura...

Summary Near-term hydrocarbon markets remain tight, stemming from Russia/Ukraine, but long-term oil prices are being driven lower by additional emerging factors. Recessionary fears in the U.S. and Europe, continued COVID disruptions impacting Chinese demand, and Russian barrels re...

Summary The world has always relied on the Saudis for decades to calm the oil markets by producing more oil when prices rise, something they are not capable of doing as the truth of their capabilities is now being questioned. We have liquidated our strategic oil reserves, pulled b...

Summary The prices of natural gas futures in Europe, after increasing 20-fold since March 2021, have plunged. The front-month October TTF contract in the Netherlands – a benchmark for northwest Europe – plunged by 8% on Monday from Friday. The spike in futures pr...

Summary Energy stocks are poised to report strong earnings for the second half of 2022, while the S&P 500 is forecasted to post earnings declines. The green revolution will continue, but with barely 3% of U.S. electricity production originating from solar and wind sources, fos...

Summary The cost of energy is extremely high now in Europe, and that is stoking political desperation. The wholesale market would be determined by LNG supply/demand, and not by the EU’s internal bottlenecks. The bottlenecks don’t go away because EU doesn’t...

Summary Global inflation was generally moderating when the pandemic began, and the downward trend continued into the early months of the crisis. Food and energy are the main drivers of this inflation, as our Chart of the Week shows. Inflation continued to climb through July, a...

Summary We think the energy crisis will spur a recession in Europe. The ECB is trying to fight inflation without recognizing the costs. We prefer credit over equities. The ECB raised rates by a record 0.75%. We think the ECB will keep raising rates through year-end until the econo...

Summary England and Europe’s near-total reliance on Russia for their energy needs has prices spiking massively the last several months. We are starting to see the latest government bailouts - those of utilities. We feel that the only real consequential downside moves in the...