EU Energy Pricing Trends - 20 Nov. 2020
20 Nov 2020
Falling gas futures pricing and restricted economic activity sent European calendar year power contracts lower this week, even as oil and carbon climbed higher. An announcement from the EU that the first EUA auctions of 2021 would likely be delayed by four weeks sent carbon pricing higher, with signals from oil and equity markets providing further price support.
Mild weather and ample supplies further strengthened European gas fundamentals this week, placing pressure on spot and futures pricing. Net LNG imports into northwest Europe have already totalled 2.9 million cubic meters (mcm) this month, and with another 1.6 mcm expected to arrive before December 1st.
Global oil benchmarks pushed higher this week as COVID-19 vaccine progress continues to improve the oil demand outlook for early-2021. Moreover, strong Chinese crude demand and signs that OPEC+ will postpone curtailing current output cuts also added to the bullish narrative.
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