In this week's highlights: European gas market players publish their first-quarter results as they continue to analize the requirement to pay for Russian gas in rubles; the ACER is to present its final report on the wholesale electricity market design to the EC; and Europe continues to face uncertainty particularly around diesel and gasoil.
- European gas players to report on market conditions (00:18)
- ACER set to report on power market design (01:49)
- Bearish tone for oil markets ahead of Q1 results (02:37)
In this week's highlights: the Agency for the Cooperation of Energy Regulators is to present its final report on the wholesale electricity market design to the European Commission, and Europe continues to face uncertainty particularly around diesel and gasoil.
But first, in the European gas sector, a number of market players are to publish their first-quarter results this week, which will include commentary on gas market conditions and could give some visibility on responses to the Kremlin's order to switch to ruble payments for Russian gas.
Austria's OMV and France's TotalEnergies are among the European energy companies set to release Q1 earnings this week.
It remains unclear whether the new requirement for EU buyers to pay in rubles via new accounts at Gazprombank could lead to any gas supply disruption in the event companies refuse to comply with the new terms.
The UK last week issued a temporary sanctions waiver allowing companies that buy Russian gas for supply in Europe to make payments to Gazprombank and to open new accounts at the bank.
Gazprombank has been sanctioned by the UK, but not by the EU.
Russian officials have said that some European companies and countries had already agreed to the new payment procedure, while others continued to analyze it.
And that takes us to our social media question for the week: Do you think the future of Russian gas is in rubles? Tweet us your thoughts.
In power, the Agency for the Cooperation of Energy Regulators is to present its final report on wholesale electricity market design to the European Commission by the end of April.
Power market design has become a hotly contested political issue since Russia's invasion of Ukraine, with several EU member states seeking to control the influence of gas-fired generation in power price formation.
In an initial report published last November, ACER said it would look at the pros and cons of enhanced hedging instruments, more liquid forward markets, contracts for differences and power purchase agreements.
All could help support capital-intensive investments with low operational costs.
And finally, in the oil market, the mood has turned bearish as recession fears, plus lockdowns in China, weigh on the demand outlook.
On the supply side, curbs on Russian oil appear less severe than some had anticipated. And the disruption we've seen around the Mediterranean and Black Sea – notably to Libyan and Kazakh production -- is being offset by additional supply from West Africa and the US.
That said, Europe continues to face uncertainty, particularly around diesel and gasoil, with stocks in the Amsterdam-Rotterdam-Antwerp hub at record lows. Moves by oil buyers to halt Russian crude and product purchases may also bite deeper, even without a formal EU ban on Russian imports.
In that regard, a ban remains a distinct possibility after the apparent re-election of French President Emmanuel Macron, despite warnings over the economic impact voiced, among others, by US Treasury Secretary Janet Yellen.
One key thing to watch will be the start of the Q1 earnings season for the oil and gas majors, with TotalEnergies publishing its results on Thursday followed by Chevron, ExxonMobil and Italy's Eni on Friday.
Europe's largest refiner, TotalEnergies, has already said its indicative refining margin jumped nine-fold in the first quarter compared with a year earlier and we could be in for bumper results all round
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