Power and gas markets rose and fell in June as a result of world oil production and concerns over the Greek bailout. It was a roller coaster month according to energy brokers Powerisk’s latest report which said global issues such as LNG supply and nuclear policy in Europe had a strong effect.
The report says the month was considered by many experts as ‘stagnant’ and ‘directionless’ at the start with plentiful LNG supplies and gas storage levels. However when Germany said it was effectively scrapping nuclear power demand levels the potential energy import requirements caused the market to surge.
OPEC’s first failure in 20 years to strike a deal on oil production meant at the start of June the market was worried especially with high demand from the US. Eventually last week the IEA had to step in and release huge reserves to alay fears of a price spike.
Concern over the Greek economy and its new bailouts also caused issues for the markets affected exchange rates between the dollar and euro. Oil was the main driver for changes, coal stayed relatively stable. Failure to agree new EU allowances also lead to weak Carbon pricing said the report.