5th of April 2023 Written by Lee Hart, Head of Knowhow Energy Overview Headlines: ✓ Gas and Electricity Wholesale prices are higher. ✓ EU Gas Storage levels remain high at 56% full. ✓ OPEC announced further Oil production cuts. ✓ EU Gas Storage levels are 96% full. As of the 5th of April, Gas and Electricity Year Ahead Wholesale costs were higher, when compared to last month’s report. OPEC announced further Oil production cuts on top of those from last year, in an attempt to pressure prices higher. Russia also stated the intention to extend their cuts until the end of the year. Prices have rebounded from $73 per barrel over the last month to $85. There has been a small reduction in the EU’s Gas Storage levels from 59% full to 56%. This is significantly higher than the 30% seen in both 2021 and 2022. The EU target for November 2023 is 90%, in readiness for the winter demand, which will require Gas injections through the warmer months. Large numbers of LNG deliveries are still being made to Europe, compensating for the lower Gas flows from Russia, some of which are instead being diverted to China, which may reduce their future demand for LNG. As Gas is the main source of generation, the price of Electricity closely follows, despite the contribution from much cheaper Renewables. The growing diversity of supplies, which includes Nuclear and Hydro Imports from the continent, aims at reducing the reliance on expensive carbon sourced generation such as Gas and Coal. View the full report below
