Daily (18.09.2019): NBP spot retreated by 4.9% on Friday, amid softer oil prices and lower supply risks

18/09/2019 11:38 Daily


The announcement by Saudi energy minister on Tuesday about the full restoration of Saudi Arabia’s oil production capabilities, after the largest supply disruption in 50 years, stopped the surge and led to a fallback in crude oil prices. Potential releases from strategic oil reserves in the U.S. and other countries added pressure on prices. Consequently, Brent crude dropped back by 6.5% to $64.55 a barrel, while WTI futures retreated by 5.7% to $59.34 a barrel. 

British gas prices decreased on Tuesday amid a fall in oil prices and receding supply risks, as Russian flows via the Opal pipeline were higher-than-anticipated despite a reduction started on Saturday. Moreover, an expected rise in Norwegian gas supply next week due to maintenance also weighed on prices. NBP spot tumbled by 4.9% to 29.25 p/therm, and the price for the Winter 2019 delivery contract sank by 6% to 49.24 p/therm. While lower oil prices dragged down gas prices, investors are still on alert, as possible retaliatory measures in the Middle East could affect further the oil prices, and the investigation into French nuclear reactors issues has not ended yet. 


Traders switched from the recent exceptional energy news and focused on the fundamentals, causing the European day-ahead power prices to reverse trends on Tuesday. The price for the German spot power contract soared by 7.7% to 36.48 EUR/MWh, boosted by strong demand and weaker wind generation. Meanwhile, the equivalent French contract slumped by 8.6% to 39.06 EUR/MWh, due to forecasts of an important increase in wind power supply. 


On the curve, electricity prices turned bearish on Tuesday, amid softer fuel contracts after oil prices started to ease on news about a shorter-than-expected production outage at Saudi oil infrastructure. The German power contract for delivery in 2020 settled at 50.95 EUR/MWh, or 1.5% lower for the day. The price for the equivalent French contract inched down by 0.8% to 54.04 EUR/MWh.  


EU carbon prices also pared earlier gains in line with bearish gas and coal markets on Tuesday, tracking lower oil prices. The price for the 2020-expiry contract dropped by 3% to 26.46 EUR/tonne.

Exxon Mobil considers sale of Malaysian offshore assets for up to $3 bln

09/10/2019 14:54:00

U.S. energy giant Exxon Mobil Corp is considering a sale of its Malaysian upstream offshore assets for up to $3 billion, Bloomberg reported on Wednesday.


Zimbabwe hikes average electricity tariff by 320% - energy regulator

09/10/2019 13:25:00

Zimbabwe has increased the average electricity tariff by 320% to let the state power utility ramp up production and improve supplies at a time of daily rolling power cuts, the national energy regulator said on Wednesday.


Daily (09.10.2019): European carbon prices reached EUR 23 a tonne on Tuesday, on worries over Brexit negotiations

09/10/2019 10:50:00

Crude oil prices traded lower on Tuesday, after Donald Trump reported that a quick trade deal will unlikely happen soon. Meanwhile, oil prices were supported by protests in OPEC members Iraq and Ecuador, which threatened to disrupt their oil output. Hence, WTI futures fell by 0.2% to $52.63 a barrel, while Brent crude edged 0.2% down at $58.24 a barrel.