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Rising interest rates in US and Europe gas crisis trigger volatility in energy space

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Rising interest rates in US and Europe gas crisis trigger volatility in energy space

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Concerns of lower demand from China following strict lockdowns continue to weigh on prices. This in addition to a rise in interest rates in US and Europe have resulted in contradicting fundamentals, which are triggering the current volatility in the energy space.

The crude prices continue to remain in the headlines holding above $90 per barrel as worries of tight fuel supplies ahead of the upcoming European winters intensify. Russia's cutting off the gas supply to Europe has only further compounded these worries.

However, concerns of lower demand from China following strict lockdowns continue to weigh on prices. This in addition to a rise in interest rates in the US and Europe have resulted in contradicting fundamentals, which are triggering the current volatility in the energy space.
The crude prices continue to have support given that there is a hurricane season in the Atlantic and sanctions from the European Union on Russian oil, and a further output cut from OPEC Plus also remain supportive factors. This volatility has also weighed on the prices of other commodities.
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