Main Energy Report November 22
✓ A considerable reduction in Gas and Electricity Wholesale costs.
✓ EU Gas Storage levels are 96% full.
✓ Still potential price volatility should there be further supply issues.
✓ EU Gas Storage levels are 96% full.
As of the 15th of November, Gas and Electricity Year Ahead Wholesale costs were lower, when compared to last month’s report. Oil is higher at $94 per barrel, from $88, as OPEC+ takes measures to keep the price inflated.
Nord Stream 1 and 2 pipelines are unlikely to provide Gas this winter. Therefore, it is a significant positive that EU Gas
Storage levels have been filled almost to capacity. This is the result of measures taken to reduce consumption, milder temperatures, the sourcing of supplies from elsewhere and an influx of LNG deliveries. However, there could still be shortages this winter in the event of a long cold spell and further supply disruptions.
Electricity prices closely follow Gas costs, due to its use for generation. In the event that there were Gas supply issues this winter, all available methods of generation would be explored, and measures taken to encourage consumers to reduce demand at peak times. Coal power stations are being made available to balance the system in the event of shortfalls, as we cannot rely on imports from Europe, where their own issues include, over half of French Nuclear reactors being offline.
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