Energy Market Highlights:
- EU gas prices declined due to mild weather and strong LNG deliveries. The gas storage levels across the EU stood at 69% full capacity. Meanwhile, LNG gas deliveries remain high which allows Europe to restock its gas storage.
- The EU and the UK banned the seaborne imports of crude oil from Russia on 5 December 2022. However, the full effect will likely take some time to be noticed.
- Coal inventory at 4 key Amsterdam, Rotterdam and Antwerp import terminals remained high, putting bearish pressure on coal market prices.
- Weather forecast still remains the main driver for power prices in Europe. The temperature is forecasted to remain above the historical level, which can be seen as a bearish driver into the month of February.
- After 40 years of service, Belgium’s Tihange 2 reactor is being permanently shut down, making it the country’s second nuclear reactor to shut down.
- Following Ukraine’s appeal to the EU’s 27 member states to include Russian state nuclear energy corporation Rosatom in sanctions, Hungary, which owns a Russian-built nuclear reactor, has vetoed the move.
- Overall, although the near-term news and fundaments remain bearish, 2023 still has a lot of uncertainties and price risks associated with the next winter. Therefore, corporate buyers may use this window of opportunities to lock into competitive fixed-price energy supply deals for Cal 2024.
To read the prior week’s European Energy Market Update, please follow the link here.
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