6th of June 2023 Written by Lee Hart, Head of Knowhow Energy Overview Headlines: ✓ Gas and Electricity Wholesale prices are lower. ✓ EU Gas Storage levels remain high at 70% full. ✓ Large numbers of LNG deliveries continue to arrive in Europe. ✓ EU Gas Storage levels are 96% full. As of the 5th of June, Gas and Electricity Year Ahead Wholesale costs were lower, when compared to last month’s report. During May, Oil fell to just $72 a barrel, well below the $80 it is thought members of OPEC+ require. In response, on the 4th of June, they announced production cuts with the intention of stimulating the price to help support their economies and fund projects to help them diversify away from the reliance on Oilrevenue. Oil is currently $76. The EU has a target to fill Gas Storage to 90% full by November, in readiness for the winter demand. Since last month, levels have increased from 60% to 70%, considerably higher than last year. There will be a continued focus to divert any excess Gas into Storage, aided by the large numbers of LNG deliveries still being made to Europe. There is the potential for some of these shipments to start heading to Asia to supply China’s growing economy. With Gas prices falling and it being the main source of generation, Electricity has followed Gas lower. We do have a growing diversity of supplies, which includes renewables and connections to the continent, but they are not yet able to match the scale and reliability of Gas generation. The Met Office forecast for June suggests temperatures are likely to be above seasonal norm. Find out what this means for you and read the full report below
