Daily (14.12.2018): European year-ahead power prices surged by over 2% on Thursday, amid a bullish energy complex

14/12/2018 11:59 Daily


Oil prices rose on Thursday after a sharp decline in U.S. crude inventories. Accordingly, WTI crude increased by 2.8% to $52.58 a barrel. Concerns over a deficit of crude in the market, following the recent agreement between OPEC and Russia on a 1.2 million bpd production cut, also contributed to a price boost. Brent crude added 2.2% to close at $61.45 a barrel.

British wholesale gas prices hiked on Thursday, on expectations for higher gas-for-power demand due to weaker wind production. NBP spot increased by 1.9% to 66.25 p/therm. On the curve, the March 2019 delivery contract trade 1% higher at 65.66 p/therm, on stronger demand for heating following forecasts for colder weather. 


On Thursday, expectations for lower temperatures and consequently, increased demand, led to a hike in day-ahead power prices. Both German and French contracts for next-day delivery traded over 7.5% higher to end at 71.16 and 75.34 EUR/MWh respectively.


On the curve, electricity prices extended gains amid a bullish energy complex. While the German 2019-delivery contract was 2.5% up at 54.72 EUR/MWh, the French one settled 2.2% higher at 60.1 EUR/MWh.

The EUAs upward evolution continued as well on Thursday, as a significant rally instead of an expected sell-off occurred after the options expiry. The carbon contract expiring in 2022 ended 3.5% higher at 22.65 euros a tonne, or a 2-month peak.

Norway’s Oil Production To Fall To 30-Year Low

14/01/2019 09:09:00

Despite cost controls, increased efficiency, and higher activity offshore Norway, oil production at Western Europe’s largest oil producer fell in 2018 compared to 2017 and is further expected to drop this year to its lowest level since 1988.


Daily (11.01.2019): German spot power price fell by 26% on Thursday due to strong wind generation

11/01/2019 11:45:00

Oil prices edged slightly higher on Thursday, tracking bullish equity markets following comments from the U.S. Federal Reserve chairman. However, gains were capped by waning optimism about the three-day U.S.-China trade talks, as these finalized with no concrete details. Concerns about a potential slowdown in global economy fuelled by weaker Chinese economic data also limited the rally in oil markets. On that background, Brent crude inched 0.4% up to $61.68 a barrel, while WTI futures settled 0.4% higher at $52.59 a barrel.


BP discovers another giant gas field in the Caspian

11/01/2019 09:34:00

BP and its partners just spent $28 billion bringing a giant natural gas project in Azerbaijan online, and that may only be the start.