European power prices

European Energy Market Update – Week 15 (Apr 17th, 2022)

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Energy Market Highlights:

  • Gas market price increased by 11% WoW as the market remains worried about the future of Russian gas supply.
  • The forward power curve is still in a backwardation. However, the spread between Y+1 contracts and >Y+1 contracts has been reduced over the past week by having Y+2 contacts moving significantly higher (+15% WoW). This is likely because the market participants expect the war in Ukraine last longer than initially expected
  • The EU banned Russian coal imports at the end of last week. This news has pushed Coal prices to the new historical highs
  • A complete halt of Russian energy supplies to Europe will lead to an economic recession issue. The EU can’t replace Russian gas with LNG, Renewables and Coal in 2022-23.
  • The EU Commission proposed a new regulation to have gas storage filled by 80% by 1st Nov 2022. This will keep gas prices elevated during the Summer season when it’s time to refill the gas storage.
  • There’s a risk that Europe might not have a lot of gas in its storage to last through the next Winter.
  • No major bearish news can be foreseen at this stage except for a possible economic recession, Covid and more Russian gas supply to the EU.
European energy market update
energy market update
European energy market
German power market price

To read the prior week’s European Energy Market Update, please follow the link here.

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1 thought on “European Energy Market Update – Week 15 (Apr 17th, 2022)”

  1. Pingback: (2022) European Energy Market Update - Week 16 (Apr 24th, 2022) | Futrue Energy Go

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