Insights from Extreme Oversold Conditions: A Closer Look at Rotterdam Coal, China Thermal Coal, and Dutch TTF Gas

During Monday’s trading day, the prices of Rotterdam-delivered coal, China thermal coal, and Dutch TTF Gas each rose by 10%, 10%, and 20% respectively.

These commodities were featured in the “Extreme Oversold” section of my recent weekend edition of Macro Extremes.

Macro Extremes (week ending June 2, 2023)

While it would be preposterous and myopic to claim any seer-like ability or visionary foresight for such an occurrence, I do want to emphasise the validity of the purpose behind my publication.

It aims to raise awareness of the potential for changes in direction once prices have reached extreme ends of their pendulum.

However, it is perverse that these surges don’t necessarily make me happy nor make for constructive price action, as there are now gaps below.

Furthermore, a one-day rise of 20% in Dutch TTF Gas merely sees it trading at the same price as 9 days ago (on May 23, 2023)