The potential disruption to global energy supply chains posed by a historic blocking of the Suez Canal was reflected in annual European power contracts last week, coal prices were squeezed higher amid the disruption. LNG imports into northwest Europe fell to a two-week low.
Europe
Flooding in Australia and a stuck container vessel in the Suez Canal caused volatility in the energy markets. A bullish sentiment struck the near-curve market this week due to uncertainty surrounding these events.
Czech Republic & Slovak
US natural gas inventories decreased by 36 Bcf for the week ending March 19, compared with the five-year (2016–2020) average net withdrawal of 51 Bcf. Working gas stocks total 1,746 Bcf, which are 96 Bcf lower than the five-year average and 263 Bcf lower than last year at this time.
United States
CO2 hit a new all-time record price which led to an increase in electricity pricing over the last week. Natural gas prices rose in anticipation of a gradual phasing out of coal. Confinement measures and vaccine uncertainty weigh on oil prices.
France
With gas, oil and carbon prices moving lower, there was nowhere else for U.K. power contracts to go but down last week. Milder temperature forecasts and a bearish oil market pressured futures contracts lower. Coal futures extended the year’s gains last week, climbing to the highest level since early January.
United Kingdom
Power prices fell with a resurgence of COVID-19 and extension of lockdown measures. LNG imports were up 20% week-on-week, rising to the highest level in over a year, while oil futures slumped last week, setting the tone for the wider energy market.
Europe