Energy Market Update 10/12/2024

Welcome to our weekly energy market update, where we share the latest trends, shifts, and key developments impacting the energy sector. Whether it’s fluctuations in oil and gas prices, changes in renewable energy policies, or updates on energy infrastructure projects, we’re here to help you stay informed. Join us as we break down the most important factors influencing the market this week, and explore what these changes could mean for your business.

Current Market Drivers:

📉 European storage has fallen from 95% to under 83% over the last month, with colder weather this weak potentially leading to further withdrawals. Colder weather in Asia could also increase LNG competition, leading to further reliance on storage in Europe.

❄️ Geopolitical risk from Russia-Ukraine remains supportive. The US has stationed jets in Scotland for the first time since the Cold War on fears that gas interconnectors could be targeted.

💸 Russia has relaxed rules around gas purchasing in Rubles as a way around US sanctions. This will increase the gas flows into Europe and has helped bring the price down.

🌍 The Middle East shows signs of cooling down, with Iranian capabilities hurt by the fall of Assad in Syria, damage to air defences and assassinations of Hezbollah leadership. This could ease geopolitical risk in the region, though some uncertainty remains about the impact of Assad’s fall.

⚛️ EDF have extended the lifespan of 4 nuclear reactors, totalling around 2.4GW of capacity, due to go offline in 2026. This improves the UK’s low-carbon baseload supply.

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