Oil traders are certainly quick in bagging bargains as Brent oil prices have crossed above the critical price level of $100, even though there are real concerns about the slowdown in economic activity in the world's biggest economy, the US.
There are two reasons that we see upticks in oil prices. Firstly, the decline in the dollar index, and secondly, the signs of a tight supply of physical crude.
Natural gas prices are also highly likely to remain volatile, and without doubt, the path of the least resistance is skewed to the upside as Russia is ready to play the supply game. The country tightened the supply through Nord Stream 1 pipeline to Germany yesterday. Going into winter, gas supply for Europe will be a significant issue as Kremlin is determined to play the tit-for-tat game, as the EU has imposed sanctions on Russia, President Putin will use the gas card to punish the EU. Countries like Greece have already shown their displease to the EU's request to slow down gas consumption.