Weekly energy market update:
- Oil prices recovered this week as strong demand offset broader economic fears. Shanghai is set to reopen on June 1 after a two-month lockdown that will fuel the commodity market demand.
- Following the suspension of Russian gas supplies to Poland and Bulgaria last month, as well as Finland last weekend, due to non-compliance with the new rouble payment scheme, the market is concerned about Russian supplies in the near term.
- The gas stock levels continued to recover rising to 45% in Europe amid the strong LNG gas deliveries from USA and Qatar.
- The EU Commission plans to mobilize close to 300bn Euros in loans and grants to improve energy infrastructure and facilities to lower reliance on Russian gas.
- EU coal prices increased this week as the market faces big supply concerns as coal imports from Russia will end on 10 August.
- Forward power prices in Spain and Portugal will continue to see uncertainty as market participants await Brussel’s approval of the Iberian price cap. Day-ahead power price can average around 120 EUR/MWh. You can learn more about this topic in the article here.
To read the prior week’s European Energy Market Update, please follow the link here.