The Energy Cable #21 – Energy taking the temperature on the Economy
Over the last weeks, we have highlighted the fragility in areas of the EZ and we thought we wanted to use energy as a lens to look at the weak demand in Europe. While we agree with many that the supply outlook looks bullish, we, at the same time, see that demand is looking bleak. Firstly, headline inflation in Europe has one way to go and that’s down. Natural gas and electricity futures will currently be predicting a headline at 5% going into the fall. Not quite the environment where you want to be long energy.