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

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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.

Daily (18.02.2020): Carbon prices above the €25-threshold amid a bullish wider energy complex

18/02/2020 10:08:00

Crude oil futures edged higher on Monday as the coronavirus-related demand worries have been offset by output cuts from major oil producers. Brent crude rose by 35 cents, or 0.6% to settle at $57.67 a barrel. U.S WTI crude increased by 0.5% to end at $52.31 a barrel. However, trading volumes were thin due to the U.S. Presidents’ Day holiday.

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ScottishPower announces 100% green electricity tariffs

18/02/2020 09:22:00

Energy supplier ScottishPower has announced that from today domestic fixed-price tariffs will be supplied by 100% green electricity generated by the company’s own UK windfarms.

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Europe adds 15.4 GW of wind in 2019

18/02/2020 09:18:00

Europe added 15.4 GW of new wind power generation capacity in 2019, up by 27% from a year ago, industry body WindEurope announced today.

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