Alphavalue/DIVACONS | European gas prices are rising as Red Sea attacks highlight the risks to shipping. Meanwhile, as cold weather grips Europe, the demand for heating oil has been boosted. NYM HH Nat Gas is up +21.76% ytd, though it eased -4.08% on Wednesday.
Link Securities | Bloomberg reported a rebound in European gas prices, with Dutch market futures rising 6% amid tensions in the Middle East. There are concerns that the regional war will widen from the Israeli-Palestinian conflict in Gaza. The US carried out some strikes on Iraqi targets and new attacks by Houthi militias were reported in the Red Sea. Iranian media reported last weekend that an Iranian commander was killed…
Banc Sabadell | The Council of Ministers gave the go-ahead to the extension of the Iberian exception (gas cap) until the end of the year, which would already have the approval of the EC. The formula has been modified, the main new feature of which is that the price increase curve will be “longer” and “smoother” than last year. If the curve of the gas cap was increasing, until now,…
Fernando Rodriguez: Interview with Carlos Delclaux, president of Vidrala and Vocento board member. “The EU has busied itself lecturing the whole world on renewable energies. But a project of this magnitude should have guaranteed supply, and an orderly transition process to ensure that along the way you don’t run out of industry or that citizens don’t suffer ‘energy poverty’… But Europe has grown too fat with contentment. And we are…
Banca March| This week sees Europe cross the halfway point of the winter season with reserves at 81%, well above the usual average for this time of year, favoured by temperatures in December and half of January that have been unusually high for the winter season. In northern Europe, for example, average temperatures at the end of the year were up to eight degrees higher than the average over the…
A record six (mostly extraordinary) meetings were held in the end and the last one produced a white smoke: an agreement to impose a €180 cap on the price of imported gas. The new ‘gas market correction mechanism’ will operate with a double safety key. It will be triggered automatically when, for 3 consecutive days, the price on the Dutch TTF market reaches 180 euros per megawatt hour (MWh). But…
In Europe, in November, the fall in natural gas demand was 19%, much more than the 15% drop estimated by the EU. In addition, November is the first month in which we can see how the residential and commercial segment is reacting to higher energy prices. Demand from the industrial customer has already been falling for several months (-28% vs 5 year average) and has not been surprising. But the…
The European Commission yesterday authorised as State aid the so-called Iberian derogation, which consists of setting a cap of 48.8 euros/MWh in Spain and Portugal on average for one year on gas offers in the wholesale electricity market. According to a European Commission communiqué, the measure involves state aid of 8.4 billion euros (6.3 billion for Spain and 2.1 billion for Portugal) “aimed at reducing wholesale electricity prices in the…
Juan Antonio Martínez & Leonardo Gago (ASE Group) | More liquefied natural gas (LNG) is arriving at European ports and has lowered the daily price and that of immediate short-term gas products at the Dutch TTF. For the time being, the increase in LNG imports is offsetting the strain on Russian supply. In Q1 2022, Russian exports to the EU had fallen by 35% compared to the 2016-2021 average for…
Spain and Portugal announced Tuesday that they have reached an agreement with the European Commission (EC) to limit the impact of gas in the formation of electricity market prices. Spain and Portugal announced the agreement after holding a meeting in Brussels with the Vice-President of the European Commission responsible for Competition, Margethe Vestager, after the European Council approved in March an “Iberian exception” so that these two countries could prevent…