[MARKET ANALYSIS] Crude benchmarks reverse earlier gains as Nat Gas continues to pare back recent gains following the Arctic storm panic

• Crude benchmarks initially gained at the start of the Asia-Pac session, following on from Tuesday's bid higher, before paring back gains. As of writing, WTI and Brent are trading near session lows of USD 62.08/bbl and USD 66.14/bbl, respectively, after peaking at USD 63/bbl and USD 67.13/bbl earlier in the session. Newsflow has been light so far, as markets continue to absorb the effects of the Arctic storm.
• With gas output slowly returning as the worst of the Arctic storm passes over, Nat Gas futures continue to pare back the gains made in recent sessions. Henry Hub futures have returned below USD 4/MMBtu, currently at USD 3.63/MMBtu, while Dutch TTF holds below EUR 38/MWh.

The reversal in crude benchmarks indicates a correction from earlier gains, suggesting a market re-evaluation after an emotional response to the Arctic storm. With natural gas supplies stabilizing as conditions normalize, this could lead to softer prices in both crude and natural gas, impacting inflation and broader energy markets. Traders should monitor the dynamics closely, especially considering any further shifts in weather or geopolitical contexts that might drive volatility.