Weekly European energy market update:
European gas prices have increased by 8% following Russian demands for “unfriendly” states to settle contracts in Roubles. Gas flows have been stable but the risk of disruption remains.
As of Friday 1st of April, Europe continued to receive Russian natural gas via pipelines. However, the situation can quickly change over the weekend or next week.
EU Carbon market trades higher following the recovery of the financial markets (+30% since March 7th)
The only bearish news stemmed from the decisions by the Chinese authorities to implement lockdowns due to COVID and the US announcement to release oil from strategic reserves
In order to limit the market price risks linked to the next Winter period, the EU Commission intends to present in April a legislative proposal requiring underground gas storage across the EU to be filled up to at least 90% of its capacity by 1 October each year
The first face-to-face peace talks between Russia and Ukraine this week in Istanbul did not yield any agreement on a ceasefire. The power market price volatility will continue to be elevated.
To read the prior week’s Energy Market Update, please follow the link here.
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