Prices rise sharply due to less wind and nuclear supply
The wholesale European power prices surged Tuesday, as French nuclear power generation dropped and wind power production in the region is expected to be lower on the day ahead. A market that is under-supplied can be identified by the weaker scenario of electricity supply and the higher demand projections. By 815 GMT on Wednesday, the price of French baseload electricity for delivery was 59 euros ($69.57 per megawatt-hour (MWh), up 165.2% over the previous close. The German baseload day-ahead bid was 72.2 euros/MWh after closing at 17.5 euro/MWh.
Germany is planning to stop using fixed-term contracts for renewable energy installations
According to the Economy Ministry, Germany will no longer use long-term fixed-price contracts for buying power from new renewable energies installations. However, it will continue to support this sector. The critics of fixed feed-in rates say that they are too expensive for the government and energy consumers, and that renewable industries have been established enough to be subjected to market forces. The economy ministry announced that alternative financing models will be examined. The economy…
Sources: Swiss gold refining plans add sparkle to Trump's trade deal
Two people with knowledge of the situation say that Switzerland wants to build a gold refinery or increase its processing capacity in the United States as part a plan to lower U.S. tariffs. Donald Trump imposed 39% tariffs on Swiss imports as a result of the U.S.-Swiss trade deficit on August 7, 2018. Switzerland had scrapped its industrial tariffs in January. The main reason for the goods trade deficit with Switzerland is due to Swiss exports, including gold and chemicals. Since the new tariffs were introduced, the Swiss government has been working with the private sector to reduce them.
Russian Oil Supplies to Hungary and Slovakia Halted After Ukraine Attack
Russian oil supplies to Hungary and Slovakia could be suspended for at least five days after a Ukrainian strike on a facility in Russia, Hungarian and Slovakian officials said on Friday, in a widening of the fallout of Russia's war in Ukraine.Russia and Ukraine have stepped up attacks on each other's energy infrastructure, hitting Ukrainian domestic heating supplies, Russia's Druzhba pipeline and other facilities, over the past few weeks as U.S. President Donald Trump has pushed for a deal to…
Germany wants to reduce its dependence on China for wind energy components
Germany's Economy Ministry published plans Tuesday to diversify sourcing of key components used in offshore wind turbines mainly by 2035, to reduce dependence on China. The government is implementing a "de-risking strategy" amid the geopolitical tensions between China and the United States, as well as after the Russian war in Ukraine triggered an energy crisis that highlighted the dangers associated with over-dependence on a single country for essential supplies. In a recent press release, the…
Copper futures rise after Trump announces a 50% tariff on imported copper
The President Donald Trump announced that he would announce a 50% copper tariff on Tuesday in order to increase U.S. production. Copper is a critical metal for electric vehicles, military equipment, the power grid, and many consumer products. U.S. Comex Copper Futures jumped over 12%, reaching a new record high, after Trump announced his planned tariffs. The announcement came earlier than expected and at a steeper rate. Trump informed reporters during a cabinet meeting at the White House that he would announce the copper tariff later in the afternoon, but did not specify when it would go into effect.
Trump announces a 50% tariff on imported copper
The President Donald Trump announced on Tuesday that he would announce a 50% duty on copper in the afternoon, with the aim of increasing U.S. production. Copper is a critical metal for electric vehicles, military equipment, the power grid, and many consumer products. Trump's decision imposed copper tariffs shocked the markets. It came earlier and at a greater rate than expected. After the announcement, U.S. Comex Copper futures jumped over 12% to a new record high. Trump informed reporters during a cabinet meeting at the White House that he would announce the copper tariff later in the afternoon…
Germany proposes a law to accelerate geothermal and renewable heat expansion
The German economy ministry released a draft bill on Friday, which would speed up the expansion of geothermal projects. Berlin is aiming to eliminate the use of fossil-fuels for heating systems by the year 2045. A Fraunhofer Institute study from 2023 showed that Germany has some of Europe's biggest geothermal resources, which could provide more than a quarter its annual heating needs. Local resistance and red tape have long slowed down development. The new bill simplifies approval procedures for geothermal, heat pump, heat storage and heating pipelines.
German gas storage operators criticise EU plan for implementation
INES, the industry lobby of Germany's gas storage laws, said that a draft proposal to amend Germany's law on gas storage to align it with European Union regulations and to fill up to the desired level could be unfair to certain operators. It may even reduce supplies. Germany is the largest gas consumer in Europe and has the most underground storage. It can fill caverns to a quarter with its annual consumption. Its efforts to implement rules on storage have an impact across all markets in the EU.
Document shows that Russia has reduced its estimate of energy export revenue by 15% for 2025.
According to a document from the Economy Ministry, Russia's forecast for oil and gas export revenue for 2025-2027, which is a major source of funding for state budgets, has been cut by 15% due to lower oil prices. This revision will put additional pressure on the budget already burdened by high defense spending for the war in Ukraine. Donald Trump, the U.S. president, said that lower oil prices this year could help to end the war in Ukraine. The document of macroeconomic projections on which the state's budget is based showed that Russia expects to make $200.3 billion in oil and gas sales this year…
Russian central bank expects low oil prices to continue for a while
The Russian central bank warned Kremlin policymakers that the United States and OPEC could flood the oil markets and cause a similar price collapse to what occurred in the 1980s, which led to the fall of the Soviet Union. The warning was issued weeks before Russian President Vladimir Putin and U.S. president Donald Trump began negotiations to end the conflict in Ukraine. Trump warned that he would impose additional sanctions against Russia if a peace agreement was not reached. He has also promised to increase U.S. production of oil and urged OPEC leader Saudi Arabian to pump more to support the global economy.
Sources: Turkey and Slovakia receive US waiver extensions for gas payments to Russia
Sources told reporters on Thursday that the United States has extended waivers to Turkey and Slovakia for gas payments made to Russia. The extensions will be valid until the end of May. Washington imposed sanctions on Russia's Gazprombank in November over the Ukraine conflict. Gazprombank is one of Russia's largest banks and receives payments from Gazprom customers in Europe for natural gas. The United States granted a waiver to Turkey, Hungary, and Slovakia in December. This removed a major obstacle for them to pay for the Russian gas they receive via the TurkStream pipeline.
German Gas Storage Group urges clarification on summer filling policy
Storage operators' group INES warned on Thursday that if the German government does not decide to fill up gas caverns in time for winter, there may be shortages. The ongoing discussions over the formation a new government and the fact that the summer prices are higher than the winter prices complicate the task. Some market participants bet that Germany will need to subsidise feed-in. INES 16 members control about 25% of the gas storage in the European Union. Trading Hub Europe, the state-mandated manager of the gas market, is evaluating the options in conjunction with the energy regulator.
The German antitrust watchdog wants to regulate the oil market more.
The German antitrust authority called for stronger regulation on the price quotes used on the oil market after an investigation showed that pricing was based on limited information which could be manipulated. Prices are often linked to wholesale contracts, and they can have an indirect impact on retail prices. These price quotations are provided by agencies that report prices, such as S&P Global Commodity Insights and Argus Media. The investigation by the cartel office found that in certain cases, a few market participants were able to dominate the reporting process.
EU rules could overheat a gas market already on fire: Bousso
European policymakers who are worried about rising energy prices have already shot themselves in two feet. Two rules designed to manage the gas market of the region run the risk instead of overheating the market during the summer months, when stocks should be refilled. In response to the disruption of gas supplies caused by the Russian invasion of Ukraine, European Union set binding targets for the storage of gas in November. The rules include intermediate goals for February, April, July, and September.
Taiwan buys Alaskan Natural Gas to avoid US Tariffs
The economy ministry announced on Monday that Taiwan was "quite interested in" natural gas from Alaska, and would continue to evaluate the feasibility of purchasing it. This is as the government tries to reduce the trade surplus and avoid tariffs with the United States. Donald Trump, the U.S. president, said on Friday that he planned to announce reciprocal duties on many countries by this week. This is a major step in his offensive to reshape international trade relationships to ways he believes are in America's favor. Taiwan has a large surplus in trade with the United States.
Portugal is keen to create an offshore wind cluster that could reach up to 10 gigawatts
Portugal's Government said on Friday that it is keen to create a cluster wind farms off the coast of its Atlantic Ocean. The total power of these wind farms could reach around 10 gigawatts. Lisbon approved last week four areas where offshore wind farms could be installed. This is a big step towards the launch of the first offshore license auction that it plans to conduct this year. The plan, which was drawn up by the Economy Ministry in coordination with Environment Ministry, envisages an occupation of over 2,000 square kilometers (772 square miles).
Gazprom expects the price of export gas to decline in 2025
Gazprom, the Russian gas producer, said that it expects to see export gas prices fall below current levels in Europe and Asia in 2025 and on average lower than 2024. The Russian economy ministry also stated that it expects the price of Gazprom gas outside ex-Soviet Union countries to fall by 2025. It is expected that prices will average $304.4 per 1000 cubic metres, down from projected $328.4 for this year. Gas sales in Europe are falling, and the company is facing challenges. The current transit agreement with Ukraine expires by the end of this year.
Prices for European gas rise as renewed Russian focus on gas is renewed
The Dutch and British wholesale gas price rose on Tuesday afternoon due to renewed concerns about Russian gas supplies to Europe starting in January. By 1505 GMT the benchmark front-month contract for the Dutch TTF hub had risen 1.87 euros to 41.83 euros/MWh, or $12.87/mmbtu. This was a continuation of the gains made in the morning. It fell to 39.10 euros/MWh intraday on Monday, its lowest since November 6. The front-month contract in Britain firmed up by 3.85 pence, to 104 pence/therm. Meanwhile, the day-ahead contract increased 3.75 pence, to 100.8 pence/therm.
Wind supply is expected to surge, prompting a reduction in wind levels.
The European spot power price fell on Wednesday from its highs as there was more wind forecast in the coming days and the demand in the area eased.LSEG analyst Francisco Gaspar Machado talked about "higher outputs of wind energy, aided with lower consumption and greater solar outputs."LSEG data shows that French baseload power for the day ahead was down 27.5% at 108 Euros ($113.31), remaining at highs of several weeks, at 0925 GMT.The German equivalent contract was not traded but the settlement…