Nuclear production will be lower than expected in the coming weeks. This forecast accentuates fears in all market participants. Despite the reduced flow of Russian gas and gradually decreasing inventories, market participants are optimistic for natural gas. Oil demand is still strong, confirming that the 5th wave of COVID will not have an impact on the market.
France
The natural gas storage report for the week ending 1/7 indicated a withdrawal of 179 Bcf. This draw came in close to expectations, but eclipsed the benchmarks for last year's coincident week, as well as the 5-year average for the week.
United States
Last Thursday, the Government announced the implementation of two measures to limit the increase in electricity prices for the year 2022. France has, therefore, decided to act by activating the two available levers, the ARENH mechanism and its energy tax policy.
France
The month of December saw the high-point of unprecedented volatility. In an already extremely tense climate, the market reacted immediately following the announcement of the shutdown of 2 additional nuclear reactors. Prices continued to rise, led this time by electricity, to reach an all-time high.
France
Gas market experienced significant price decline since pre-Christmas period, especially in near curve market. This is thanks to abundant LNG imports into the continent as well as stable Norway flows. The electricity price grew mainly as reaction to news about EDF´s cut of its 2022 nuclear production target by almost 10%.
Czech Republic & Slovak
The natural gas storage report came in well below expectations, and also fell significantly short of the benchmarks for last year's coincident week, as well as the 5-year average. The onset of significant cold presents potential constraints on natural gas pipelines -- which in turn impacts fuel for natural gas- fired power generation.
United States