Whether it's oil, gas, electricity or emission allowances, all forms of renewable and fossil energy sources rose in price this week. The price increases are partly structural, partly it is weather related.
The price of emission rights passed the €30 limit this week. This price increase is probably structural, as the European Union has decided to further tighten its emission reduction targets in the interim. This clearly has a price-increasing effect. Poland will probably receive support from the EU to clean up the coal industry.
Vaccine optimism
Developments in the oil market also appear to be permanent. When the corona crisis first became apparent in full at the end of February, the price of agricultural diesel dropped spectacularly from more than €1 per liter to €0,90 in the first week of the semi-lockdown. Since then, agricultural diesel has never cost more than it does today. The price of LTO Members benefit agricultural diesel is today (Friday 11 December) €0,93 per liter (including member benefit, excluding VAT). Since the beginning of November of this year, the price has risen by almost a dime per liter.
This is, of course, the result of the price hikes of crude oil, since the first news about corona vaccines and the impending change of power in the United States. Crude oil continues to hold prices this week, although the rapid price increases of last month are a thing of the past. The American EIA released figures on unusually large oil stocks, but there is great optimism about the first vaccination campaigns. OPEC's production-limiting strategy also seems to inspire confidence. That led to a price of more than $50 a barrel until yesterday. This price level had not been reached since March 6, despite alarming corona figures.
Warm wind coming
The daily price of gas also touched a level this week that had not been reached for a long time. A price of more than €15 per cubic meter was common before the corona crisis. The stable higher oil price is pulling the gas price along. But the rebound in recent days is probably mainly due to increased demand. Yesterday, for the first time this year, an ice day was measured regionally in Winterswijk in Gelderland.
The low supply of wind energy also plays a role, which means that there is even more demand for gas. To serve the electricity market, the gas-fired power stations have to produce extra power. Just like last week, the lack of electricity production from wind turbines caused high electricity prices on the daily market. Over the next few days, however, the broom will travel through the atmosphere. The foggy, windless and water-cold weather is being traded for maximum temperatures in the double digits and much more wind. There is even a chance of a severe storm. This weather forecast means that the wind energy production that has come to a standstill will probably start again and the sharply increased electricity price on the daily market will fall again.
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