Energy Market Highlights:
- The short-term fundaments are bearish due to the mild weather conditions and high gas storage levels at 94% full
- However, the weather forecast indicates that the beginning of December will be cold both in Asia and Europe. This will likely provide support to Gas prices.
- The EC proposed to limit excessive gas price spikes next year (2023) by establishing a maximum price ceiling of 275 EUR/MWh. With the gas price at 275 EUR/MWh we can expect maximum upside risk for power prices at 550-600 EUR/MWh.
- The activity on the power futures markets decreased as more traders/buyers give preferences to the day-ahead energy market.
- Overall, market analysts expect that the high European power prices to stay for a prolonged time.
To read the prior week’s European Energy Market Update, please follow the link here.
