Main Energy Report January 23
- Gas and Electricity Wholesale prices fall significantly.
- EU Gas Storage levels are a high 84% full.
- The EU has taken action to cap the price of Gas to avoid future volatility.
As of the 4th of January, Gas and Electricity Year Ahead Wholesale costs were lower, when compared to last month’s report.
The Oil price has increased from $79 per barrel to $82, far lower than the highs of $120 plus, at times through 2022.
OPEC+ are restricting Oil production and China has reduced COVID measures, which are supporting factors.
EU Gas Storage levels remain high at 84% full, which provides considerable confidence that serious Gas supply shortages can be avoided, with the resulting higher costs and enforced restrictions on use. This has been achieved through an awareness to reduce consumption and by replacing Russian supplies, partly with large numbers of LNG deliveries. Shipments from the US Freeport LNG terminal have been further delayed until January 2023, potentially
providing further cargos to Europe, which now includes newly commissioned German LNG sites.
Electricity generation costs have moved lower due to the use of cheaper Gas, a good Wind contribution and an increase from both Nuclear and Interconnectors with the continent. The government has tools that will respond to supply issues to provide additional support and stability.
The Met Office forecast is for mild and windy conditions for most of January.