Arrival of cold weather send Annuals up
Wednesday 16th November 2022
As above average temperatures have continued across Europe, so the general downturn in gas and power prices have been maintained. With temperatures dropping back this week to close to seasonal norms, so we have seen an uptick, but generally bearishness rules sentiment at present. We continue to see strong renewable output, with recent rainfall boosting hydro-electric output in Norway and elsewhere, which in turn has reduced gas-fired generation demand. Nevertheless, the overall European generation picture remains compromised by further reductions in French nuclear output and cold snaps are thus being closely monitored for the effects they may have. Having got up to $100/barrel again, so Brent crude oil is now back to the low-$90s, acting as a brake in the wider energy complex. Oil is subdued because of the weakness in the global economy and expectation of widespread recession.