Energy Prices

Energy prices increased 4.1% month on month in January, following December’s 3.6% fall.

Energy prices rose at the sharpest pace in seven months in January, helping to reverse some of their recent losses. Crude oil, diesel and gasoline all rebounded from the prior month, with OPEC+ pausing output hikes, the U.S. threatening oil producer Iran with an armada, and India reportedly agreeing with the U.S. to switch to buying Western oil instead of Russian oil. Meanwhile, European natural gas prices soared due to low storage and cold weather at home and in the U.S., the top source of the continent’s LNG imports. Australian coking coal prices also increased due to heavy rainfall disrupting production and exports in Australia. On the other hand, prices eased for Australian thermal coal and U.S. natural gas on weak Chinese demand and a dip in LNG exports, respectively.