Energy Market Update – Week 22:
- Oil prices increased, supported by the EU agreement on banning Russian oil imports. Prices are now close to the eight-year high as the market remains concerned about tight supply.
- OPEC has decided to stick to its original oil production plans in July despite the Westerns’ calls to boost the production to tackle the sourcing oil prices.
- Russia’s coal exports to the EU destinations have risen 5% this month vs April, amid the attempt to maximize exports ahead of the EU ban in August.
- Gas prices also increased due to supply uncertainties in the next winter. The gas stock levels continued to recover rising to 47% in Europe amid the strong LNG gas deliveries from USA and Qatar.
- CO2 carbon market is expected to be volatile ahead of market reform proposals to be debated by the European Parliament on 6-9 June (speeding up the start of a carbon border adjustment mechanism, selling 250 million allowances from the Market Stability Reserve).
- Russia cuts gas supplies to the Netherlands after Dutch gas trader GasTerra has decided not to comply with Gazprom’s demands for rubble payments.
- French nuclear availability remains historically low. France will likely remain a net power importer this Summer.
To read the prior week’s European Energy Market Update, please follow the link here.