Weekly Energy Market Review – 6th – 10th December
Power
Power prices sky rocketed throughout the week, nearing new record highs and completely erasing the losses we saw during the the previous months. Rising gas and carbon markets were the main drivers, as potential sanctions on Russia dictate global markets.
Week Starting Price (Year-Ahead): £123.35/MWh
Week Ending Price (Year-Ahead): £161.57/MWh
Gas
A potential conflict between Russia and Ukraine as impacted led to halt in the launch of the Nord Stream 2 pipeline, preventing much needed gas flows from reaching European storage facilities. If tensions grow then further sanctions could be placed on Russia.
Week Starting Price (Year-Ahead): 123.35ppt
Week Ending Price (Year-Ahead): 176.81ppt
Commodities
Oil markets remain turbulent as OPEC has regained control of the market following the strategic release of oil by many major producers, and the new variant of the Coronavirus reducing prices. Despite this, OPEC are expected to go ahead with their production increase.
Brent Crude Week Starting Price: $71.75/b
Brent Crude Week Ending Price: $74.70/b