En esta lista
Energía | Carbón | Gas natural | Petróleo

Market Movers Europe, July 11-15: Supply crunch continues across energy markets

Crudo

Global Alert - Petróleo

Energía | Petróleo | Crudo

Evaluación de precios del Dated Brent

Ver: Market Movers Europe, July 11-15: Supply crunch continues across energy markets

  • Colaboradores/as
  • Shivani Pandya
  • Materia prima
  • Energía Carbón Gas natural Petróleo
  • Duración
  • 03:28

In this week's highlights, European energy markets continue to battle an ongoing supply shortage, coal is set for a return to ease gas-for-power demand as gas supplies tighten, and US President Biden heads to Saudi Arabia to secure further oil supply.

  • Nord Stream maintenance adds pressure on supply (00:16)
  • Germany approves return of coal units (01:20)
  • Biden in Middle East, supply concerns persist (02:04)
Transcripción completa

In this week's highlights, European energy markets continue to battle an ongoing supply shortage, coal is set for a return to ease gas-for-power demand as gas supplies tighten, and US President Biden heads to Saudi Arabia to secure further oil supply.

But first, to natural gas where the Nord Stream gas pipeline from Russia to Germany is to undergo its annual maintenance shutdown starting today until July 21st, during which no gas will flow.

Nord Stream flows have been running at just 40% of capacity since mid-June, after Russia's Gazprom said it had been forced to cut supply due to maintenance issues with turbines at a key compressor station.

But there has been some concern among German officials that the pipeline may not resume flows after the maintenance shutdown given uncertainties over recent Russian gas supply behaviour.

The head of the International Energy Agency, Fatih Birol, has warned that Russian supply could be cut completely ahead of the winter and that Moscow could find "excuses" to reduce deliveries further.

With European gas prices almost returning to record highs, the fate of Nord Stream flows is being closely watched by European gas market players.

And that takes us to our social media question for the week: Will Nord Stream flows return following maintenance completion? Tweet us your thoughts.

Germany's parliament has approved a range of emergency energy laws on July 8th with market participants and regulators starting to implement some of the measures.

In power generation, around 10 GW of coal, lignite and fuel oil units are set to return or remain in the market to help reduce gas-for-power demand.

The law, however, scrapped a proposed penalty on gas-fired power generators to be triggered via regulation in case of an emergency gas supply shortage.

German year-ahead power prices have risen 70% over the past four weeks to a record 370 euros/megawatt-hour with all eyes on the next moves in European gas markets.

Finally, to oil where the event of the week is US President Joe Biden's visit to Israel and Saudi Arabia, with the Saudi leg on Friday intended to mend ties with the OPEC producer, potentially helping to provide security assistance to protect oil facilities.

The market has shown signs of cooling in recent days, amid recession fears and signs of demand destruction in key European markets such as the UK, which has resulted in analysts reducing their price forecasts.

But supply concerns look likely to persist.

On the Saudi front, the prevailing view is that the kingdom will want to avoid anything that destabilizes its OPEC-plus alliance with Russia.

With little sign of an easing of sanctions against Iran, pressures remain, particularly for the Mediterranean region.

Furthermore, Libyan supply remains disrupted, while there are ongoing worries about the reliability of CPC Blend crude oil loadings in the Black Sea.

Providing a deeper perspective on both supply and demand will be two reports to be released this week, one from OPEC on Tuesday, and the other from the International Energy Agency on Wednesday.

The Platts Atlas of Energy Transition is your map to the sustainable commodity markets of the future. You can explore the Atlas by visiting the address displayed on your screen.

Thanks for kicking off your Monday with S&P Global Commodity Insights!