Market Speak: Commodity price momentum slows after winter demand peak- OPEC

According to the latest report from the Organization of the Petroleum Exporting Countries, most major commodity price indices declined in February, with precious metals being the notable exception. Market sentiment in the futures space remained broadly bullish, supported by rising combined open interest and stronger net long positions from money managers. However, the normalization of winter weather conditions eased pressure on energy markets following January?s peak heating demand, while a slightly weaker US dollar provided only limited support to commodity prices. The energy price index slipped by 0.5% month-on-month as falling natural gas prices in the US and Europe outweighed gains in coal and crude oil. Despite recording a second consecutive monthly rise of 6.9%, average crude oil prices remained lower on a yearly basis. Natural gas prices at the Henry Hub experienced a sharp correction, dropping more than 50% month-on-month as temperatures normalized after a cold snap in January. Data from the U.S. Energy Information Administration also showed declining storage levels during the month, though increased LNG exports helped cushion the downside. Overall, the report highlights a commodity market transitioning from winter-driven volatility toward more balanced conditions.

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