Late June rally fails to offset overall electricity falls
Monday 3rd July 2023
The rally in prices seen at the start of June has not pushed on with any real vigour. The issues that caused the surge – low renewable output, cooling demand spiking and Norwegian gas maintenance delays – have all been resolved with wind speeds increasing and gas coming back online. The high EU gas storage levels have helped calm things, in spite of a reduction in LNG shipments. There has been little price support offered by oil, although this may rise on extended OPEC+ production cuts. There have been price increases seen across coal and carbon, as Germany in particular has relied more heavily on coal-fired electricity generation. There has also been more speculative trading on gas, as the political drama in Russia plays out.