Daily (11.10.2018): WTI crude dropped by 2.4% on Wednesday as forecasts for lower economic growth curbed the demand for oil

11/10/2018 11:01 Daily

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Oil crude prices slipped on Wednesday as the International Monetary Fund (IMF) mitigated its global growth projections in its latest World Economic Outlook report, reducing the demand for oil. However, the losses were capped as Hurricane Michael led to the shutdown of roughly 40% of Gulf of Mexico’s crude oil production. 

 

Brent crude closed at $83.09 a barrel, representing a 2.3% loss. WTI crude tumbled by 2.4% to settle at $73.17 a barrel.

British wholesale gas prices were slightly bearish on Wednesday, as higher temperatures and stronger wind generation curbed demand for natural gas for heating. Consequently, NBP spot price dipped by 2.5% to 65.70 p/therm. Further along the curve, the price for 2019 delivery contract traded 2.7% lower at 65.61 p/therm. 

 

European spot power prices lost ground on Wednesday.  German day-ahead power price slumped by 12.6% to end at 54.35 EUR/MWh, on expectations for lower consumption. Meanwhile, the equivalent contract in France lost 4% to end at 65.31 EUR/MWh, in spite of outages at  EDF’s 1,500 MW Chooz 1 nuclear reactor starting Thursday and lasting until October 22nd.

 

There was also a bearish trend in electricity prices on the curve, tracking the downward evolution in carbon emissions, gas and coal markets. The German baseload 2019-delivery contract traded 3.6 % lower at 53.27 EUR/MWh. Meanwhile, the French equivalent contract settled at 57.61 EUR/MWh, posting a 3.4 % loss.

 

European carbon contracts dropped further on Wednesday in another volatile session, closing below €20 for the first time this month, thus hitting a three-week low. The price for the contract expiring in 2019 plummeted by 7% to reach 20.20 euros a tonne.

Shell to sell upstream business in Denmark for $1.9bn

18/10/2018 09:21:00

Royal Dutch Shell, through its affiliate Shell Overseas Holdings, has reached an agreement with Norwegian Energy Company ASA (Noreco) to sell its shares in Shell Olie-og Gasudvinding Danmark B.V. (SOGU) for $1.9 billion.

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Poland, US firm sign long-term gas imports deal

18/10/2018 09:14:00

Poland's main gas company says it has signed a long-term contract for the purchase of some 40 million tons of liquefied natural gas from a U.S.-based producer in the first such deal in Central and Eastern Europe.

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Daily (17.10.2018): UK gas prices dropped on Tuesday due to an oversupplied market

17/10/2018 11:04:00

Global oil prices were slightly up on Tuesday, as forecasts for U.S. supply growth were offset by concerns over the Middle East crude supply due to geopolitical tensions, and the approaching U.S. sanctions on Iranian exports. U.S. West Texas Intermediate futures edged 0.2% higher on Tuesday, to trade at $71.92 a barrel. Meanwhile, Brent crude oil futures rose by 0.8% to end at $81.41 a barrel.

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