Following the announcement that Russian shipments through the Turkstream pipeline to Turkey had resumed, the market weakened early this morning (28th June). This, however, was only temporary as the market began to rise in the early afternoon, leaving a mixed view by the end of the day. This is mostly the result of persistent worries that Russia will stop, or at the very least, make the flow of gas unpredictable. Temperatures are expected to rise starting on July 4th, and it’s conceivable that less wind may blow during this warmer period which could tighten supply margins adding to the bullish fundamentals.
July 22 wholesale gas prices s increased by 1.3% to close at 171.91 pence per therm.
Wholesale power prices also increased by 1.3% to close at £195.16 per MWh.
In other energy related news:
- The G7 has decided to investigate imposing an embargo on the transportation of Russian oil that has been sold above a specific amount. The cap’s goal is to attach a price cap to the delivery of oil cargoes, insurance, and financial services. It’s also a means of stopping Moscow from profiting from their invasion of Ukraine, which has significantly increased the cost of electricity. The idea, though, could backfire, according to some analysts.
- It has been revealed that National Grid intends to compensate customers to use less electricity during peak hours in order to lower the danger of outages this winter. The power network operator is working quickly to implement a plan that will let homes with smart metres decide whether to reduce their energy consumption when supplies are low.
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