BY: CHRIS BARRETT
A quick word about the Energy Markets
Though carbon markets fell in the earlier part of July, they have recovered over the past 3 weeks and are reaching historical high points also. Carbon is increasingly seen as a price driver for electricity in particular. Oil price movements meanwhile have been variable as concerns about the impact of new strains of Coronavirus continue to dampen optimism about a global commodity recovery.
However, at the time of writing news that the Nordstream 2 pipeline from Russia would begin to send gas into Europe imminently was received well by the market and gas prices fell significantly. Though it is too early to call this a trend it is worth keeping an eye on. Future view Currently the balance between poor gas supplies, essential for the topping up of storage for winter, and improving supplies, seems to favour through the new Russian Norsdtream 2 pipeline rather than more LNG being released from Asian markets.
Add to this the pent-up demand for energy contracts out of October and November which will discourage traders from selling, means we may be in for further price increases. Plus, the adverse weather forecast for winter will surely push prices further. However, should the Nordstream 2 pipeline deliver the hoped for volumes of gas to Europe this could change.