Energy Prices

Energy prices increased 1.6% month on month in May, following April’s 5.4% rise.

Energy prices rose for the fifth month in a row in May, but notably slower than in March and April after the outbreak of the Iran war; with the Hormuz Strait still shut, oil and LNG exports remained bottled up in the Gulf. The price of crude oil and gasoline continued to increase, while the price of European and U.S. natural gas rebounded as U.S. production dipped and prospects for stronger air conditioning demand due to a hot El Niño summer surfaced. Meanwhile, coking coal prices rose for a second month after China announced fresh safety checks of coal mines following an accident. Finally, diesel, thermal coal and uranium prices declined, but only slightly, and developments there set the stage for a future rally as fuel inventories shrank and Asian countries began ramping up coal imports.