France Power Pricing Trends | 29 August 2022
The electricity market literally "exploded" last week, driven by the unbridled rise of natural gas. Last Thursday, EDF announced the shutdown of 5 nuclear reactors would be extended, widening yet again the supply deficit for the end of 2022. The market reacted strongly to this announcement with a CAL 23 Baseload price of 1,130 €/MWh when markets closed on Friday. The situation, a nearly 330 €/MWh (+40%) increase in the space of a week, is totally unprecedented. It doesn’t bode well for the coming weeks. The weekly average price has risen from 682.42 €/MWh to 877.59 €/MWh for CAL 2023 and from 377.13 €/MWh to 443.71 €/MWh for CAL 2024.
France Natural Gas Pricing Trends | 29 August 2022
Last week was marred by a further rise in the price of natural gas. A 23% increase of PEG CAL23 products and passing the 300 €/MWh threshold shows it is gathering pace. The market is indeed tighter as the 3 days of interruption scheduled for Nord Stream 1 (from Wednesday to Friday inclusive) grow closer. Although the level of natural gas stocks in Europe is generally good (almost 80% on average), this quantity will not be enough to meet the overall demand in Winter. European governments are beginning to announce measures to restrict consumption. The weekly average price increased from 204.16 €/MWh to 261.05 €/MWh for CAL 2023 and from 142.74 €/MWh to 182.93 €/MWh for CAL 2024.
France Oil Pricing Trends | 29 August 2022
The price of Brent rose last week, boosted by the larger-than-expected decline in U.S. inventories. Last Monday, the Saudi energy minister raised the possibility of a drop in oil production by OPEC+ in order to face the challenges of an oil market "fallen into a vicious circle of low liquidity and extreme volatility". The weekly average price of Brent crude oil grew from 92.90 €/bbl to 100.10 €/bbl.
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