German wind power boosts spot prices
German and French baseload electricity prices dropped by about 10% on Tuesday, as the wind power was expected to increase in Germany. However, price remained high due to a heatwave that has affected Europe. As temperatures have risen, authorities in several European nations have issued health warnings. Wildfires in Turkey & France have forced more than 50,000 to evacuate. On Monday, benchmark European electricity prices exceeded 100 Euros per Megawatt Hour (MWh) for the first since April due to cooling system requirements and low wind output. The wind generation in Germany will increase tomorrow, and temperatures should ease off from today's peaks.
Heatwave increases demand for spot prices
The German and French power prices rose on Tuesday as the heatwave in many parts of Europe increased cooling demand. LSEG data show that French baseload electricity for Tuesday increased by 132%, to 109 Euros per Megawatt Hour (MWh), by 815 GMT. The German contract, which was equivalent to the German contract, increased by 126% and reached 117.5 Euros/MWh. The authorities of several European countries, including Britain, have issued extreme health and heat warnings after temperatures in some countries soared to over 30 degrees Celsius. The use of cooling systems is increasing, and so is the demand for electricity.
Low wind and hot weather will increase spot prices
German and French power contract prices for the next week will rise due to low wind output, which is limiting supply. Hot weather also increases demand. However, more forward-looking contracts were at a lower price on Friday morning in line with gas market. LSEG data shows that the German and French baseload power contracts for Monday were not traded by 0926 GMT. Baseload prices on Friday closed at 77.00 Euros/MWh, compared to 75.50 Euros/MWh on Thursday. Engie EnergyScan analysts said that the daily report for today shows that hydropower production is declining and demand is supported by warm temperatures. LSEG analyst Xiulan Xiulan predicted a baseload rate of 97.40 euro/MWh.
As Wars Rage, Middle East's Waning Influence on World Oil Prices Exposed
The contained move in oil prices during the Israel-Iran war highlights the increasing efficiency of energy markets and fundamental changes to global crude supply, suggesting that Middle East politics will no longer be the dominant force in oil markets they once were.The jump in oil prices following Israel's surprise attack on Iran was meaningful but relatively modest considering the high stakes involved in the conflict between the Middle East rivals.Benchmark Brent crude prices, often considered a gauge for geopolitical risk, rose from below $70 a barrel on June 12…
German spot prices fall on increased wind and French nuclear supply
The wholesale price of German spot power dropped sharply on Friday, as Germany was expected to experience a 60% increase in wind generation in the coming day. In addition, the French nuclear sector increased its availability in the region. "We expect an overall bearish outlook for Germany", said LSEG Analyst Xiulan He. He also listed lower demand, improving brown coal supply and gas-derived supplies. At 0815 GMT, the German day-ahead power was trading at 76.3 Euros ($89.48 per megawatt (MWh), 19.3% lower than its previous close. In France, the day-ahead basisload was 0.7% higher, at 74.5 Euros/MWh. However, Germany still had a discount.
NSE is the second exchange to be approved for trading in electricity futures.
India's National Stock Exchange became the second exchange this week to receive regulatory approval for electricity futures contracts. Experts say that this could help struggling utilities improve their financial situation. Last week, the Securities and Exchange Board of India gave a similar approval to the Multi Commodity Exchange of India. A futures contract allows the buyer to purchase power at a set price at a future date. Indian utilities currently rely on power purchase agreements (PPAs), which can last up to 25-years, for their baseload needs. They also supplement this with short-term purchases via power exchanges, for the peak demand.
Russell: No rush to import US energy while Asia's imports slide under Trump
Asian countries have not rushed to buy U.S. commodities, despite President Donald Trump's call for a reduction in trade surpluses. The real deal in any future talks between China and the Trump administration will involve the three major energy commodities. Other Asian economies are also looking to curry favor with Trump, and secure a better deal for themselves than the heavy tariffs that were imposed by his "Liberation Day", announced on April 2 and then paused for 90-days. In the four months since Trump's return to the White House Asia's energy imports from the United States have actually decreased compared to the same period last.
Russell: No rush to import US energy while Asia's imports slide under Trump
Asian countries have not rushed to buy U.S. commodities of energy, despite President Donald Trump's call for a reduction in trade surpluses. The real deal in any future talks between China and the Trump administration will involve the three major energy commodities. Other Asian economies are also looking to curry favor with Trump, and secure a better deal for themselves than the heavy tariffs that were imposed by his "Liberation Day", announced on April 2 and then paused for 90-days. In the four months since Trump's return to the White House Asia's energy imports from the United States have actually decreased compared to the same period last.
French spot prices rise with return of demand
On Tuesday, the French baseload electricity prices are expected to increase as demand is expected to return after both countries have returned from their Monday holidays. LSEG data shows that the French baseload electricity price for Tuesday at 0828 GMT was 30 euros ($34.30 per megawatt-hour (MWh), up 27.7% compared to last Monday. Data showed that the equivalent German contract was not traded during Whit Monday. On Friday, both Monday contracts were not traded. LSEG data indicated that the German wind power production was expected to increase by 7.5 gigawatts to 22.8 GW while French output is projected to grow 490 megawatts to 1.8 GW.
Edison Confident In Venture Global LNG Arbitration
The chief executive of Italian utility Edison said on Thursday he was confident of a positive outcome in arbitration involving U.S. liquefied natural gas supplier Venture Global, expected by the end of the year.Edison is one of several European energy companies, including Shell, BP and Galp, that have filed arbitration claims saying Venture Global deliberately failed to fulfil its supply contracts, dragging its feet when commissioning one of its plants so it could profit from higher spot prices.Commissioning, or making sure a new plant's systems are functioning as intended…
US Natural Gas Prices Fall 6% in Volatile Contract Expiration Trade
U.S. natural gas futures fell about 6% on Wednesday to a one-week low in volatile contract expiration trade, pressured by an expected decline in gas flows to liquefied natural gas (LNG) export plants.Traders said Freeport LNG in Texas might reduce output and they pointed to forecasts for less demand this week than previously expected.On its last day as the front-month, gas futures for June delivery on the New York Mercantile Exchange (NYMEX) fell 19.4 cents, or 5.7%, to settle at $3.214 per million British thermal units (mmBtu), their lowest close since May 19.The contract's price was highly volatile, up as much as 3% and down as much as 7% during the session.
Spot prices drop on increasing wind and nuclear power generation
The wholesale European spot electricity price fell on Wednesday, as wind speeds in the region were expected to increase and France increased nuclear supply. Demand expectations were not changed. LSEG's analysis showed that solar generation is declining, but lignite availability is improving. By 840 GMT on Thursday, the German baseload electricity price was 62.9 euros (71.22 dollars) per megawatt-hour (MWh), down 15.1% compared to Tuesday's closing price. The French equivalent contract was 27,8% lower, at 19.5 Euros/MWh. In Germany, wind power production was expected to grow to 27.1 gigawatts per day, up from 19.3 GW. In France, it would increase to 5.6 GW per day, up from 3.1 GW.
Spot prices increase on weaker renewable production
Early Thursday, European spot power prices increased as a drop in supply from wind and solar in Germany and The Netherlands was expected to outweigh the decline in demand and slightly higher French renewable output. At 0908 GMT, the French baseload electricity contract for Friday had increased by 28.6% and was now 18 euros per Megawatt Hour. The German equivalent contract has not been traded since it closed at 65.90 Euros/MWh on Tuesday. Florine Enengl, LSEG analyst, says that the residual load in Germany and The Netherlands is expected to increase on Friday as a result of the decreasing supply of wind and solar energy.
Edison Receives First Delivery of US LNG From Venture Global
Italian energy group Edison said on Wednesday it received the first cargo of liquefied natural gas (LNG) from U.S.
Spot prices are affected by the rising wind supply and lower demand
The European spot electricity prices for Wednesday are lower than the Tuesday price because wind power is expected to increase in the region, and demand is expected to fall. At 0928 GMT the German day-ahead price was 70.75 euro ($78.57), below Monday's closing price of 81.5 euros. LSEG data show that the French baseload price for the next day was 36 euros/MWh. This is a 22.7% decrease compared to Monday's spot result. LSEG data indicated that on the supply side Germany expected wind output to increase by 3.6 gigawatts to 11.5 GW Wednesday, and French wind output would rise by 650 megawatts to 1.6 GW.
German wind power supply drops sharply, lifting spot prices
European spot electricity prices, for delivery on Tuesday, rose on Monday as German wind power is expected to drop by almost half while demand is expected to rise. LSEG data shows that the German baseload electricity for Tuesday at 0914 GMT was 81.50 Euros ($90.71 per megawatt-hour (MWh), up 48.2% compared to Friday's price for Monday delivery. Data showed that the equivalent French contract was 32 euros/MWh. The contract for delivery on Monday did not trade Friday. She added that the Netherlands and France will also see a reduction in residual loads on Tuesday. LSEG data indicated that the German wind power production was projected to drop by nearly half, from 7.9 gigawatts to 7.4 GW.
Spot prices plunge ahead of May Day
European electricity prices dropped on Wednesday, as demand is expected to fall ahead of the Labour Day Holiday in Europe. Prices are expected to remain low into the weekend. By 0811 GMT, the French baseload day-ahead traded at $5.69 per megawatt hour (88.2% less). The German baseload position for the day ahead fell by 36.4%, to 46.4 Euros. The bid price for the country's contract on Friday was 54 euros/MWh. LSEG data shows that German wind power production fell by 320 megawatts to 3.1 gigawatts during the holiday. It is then expected to increase on Friday to nine GW.
Russell: Asia's LNG consumption is muted in April, while Europe's demand eases.
In April, Asia's LNG imports remained muted while Europe began to show signs that the seasonal slowdown was beginning as winter demand dwindled. According to commodity analysts Kpler, Asia is expected to receive 22,40 million metric tonnes of super-chilled fuel in April. It's down from the 22.68 millions tons of March, but it's slightly up on a daily basis because April is one less day than March. It's also lower than the 23,32 million tons recorded in the same month last year. This is largely due to the fact that China, the top LNG buyer, has reduced its imports. Kpler estimates China's imports in April at 4,77 million tons, down from 4,89 million tons in March.
French prompts are affected by higher wind output
French spot prices were impacted on Monday by an increase in expected wind power production across the majority of the region despite forecasts for higher demand. LSEG data shows that the French baseload electricity for Tuesday at 1052 GMT was 26.5 euros (30.07 dollars) per megawatt-hour, a 50.9% decrease from Friday's price on Monday. The German power for the day ahead was not traded. Naser Hashemi, LSEG analyst, noted that countries in the region also showed a similar pattern. Higher wind production compensated for the rise in consumption and led to a flat residual charge.
Russell: Asia's LNG consumption is muted in April, while Europe is easing up.
In April, Asia's LNG imports remained muted while Europe began to show signs that the seasonal slowdown was beginning as winter demand dwindled. According to commodity analysts Kpler, Asia is expected to receive 22,40 million metric tonnes of super-chilled fuel in April. It's down from the 22.68 millions tons of March, but it's slightly up on a daily basis because April is one less day than March. It's also lower than the 23,32 million tons recorded in the same month last year. This is largely due to the fact that China, the top LNG buyer, has reduced its imports.
