Energy Market Update 17/12/2024

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:

🔧 US Plaquemines LNG facility has started operations earlier than expected. Once fully completed, it will be one of the world’s largest LNG plants, significantly improving global LNG supply conditions.

📉 The EU Commission states that the expiration of the Ukrainian transit agreement should have a “negligible” impact on prices. This outlook is further supported by Hungary finding a workable solution to continue paying for Russian gas received via the Turkstream.

🌏 Chinese imports of LNG and pipeline gas are down by 1.4% compared to the same period last year. This is helping reduce European prices as they do not have to compete as much for the LNG.

❄️ Large downdraws in European storage, which have fallen from 95% to 76% in recent weeks amid colder temperatures, continue to provoke market nervousness supporting buying pressure in 2025.

⚠️ Geopolitical risks from Russia-Ukraine and the Middle East remain supportive. Russia has launched one of its largest attacks since the war began on Ukrainian energy infrastructure while growing concerns of a resurgence of the Islamic State in Syria are also fuelling uneasiness.

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