The oil price has passed the bottom and with that the price of diesel has also reached the bottom. Diesel oil for agriculture will probably not fall lower than a price of more than 80 cents per liter (excluding VAT, with a purchase of 2000-4000 liters).
Optimism has arisen on the global oil market about the effect of the production limiting measures. These measures came into effect on May 1. Moreover, the corona pandemic appears to have passed its peak in large parts of the world and there are more and more countries where corona measures are being relaxed. This causes the demand for energy to increase again.
Natural gas also in a nosedive
In the wake of the enormous plunge that the oil price has taken in recent months, the price of natural gas has also completely collapsed. Here too, the storage capacity available worldwide is starting to be fully used, which means that in theory, just like with the price of oil, a negative price is possible at some point.
If buyers actually become physically responsible for oil and natural gas transactions, they will do everything they can to avoid actually incurring storage costs. Unlike oil, there is also a clear seasonal pattern in the demand for natural gas. As temperatures rise in the Northern Hemisphere, demand for natural gas is decreasing.
On the other hand, less sustainable energy is also produced than in April, when a negative daily price for sustainable energy was paid several times. That hasn't happened in the past week. The weather forecasts also give no indications of particularly positively deviating sunshine duration and/or wind strength.
Manure digesters necessary
To meet all demand for sustainable energy, biomass is also needed, the Central Planning Bureau (CPB) reports in the report 'Availability and application options of sustainable biomass'. Gas production from biomass is largely supplied by manure fermentation installations, with or without supplementation with other biomass.