On April 28 the Institute sent to its members its latest bimonthly newsletter “Market Fundamentals and Prices” (Issue No. 307), which covers the period of March-April 2020. This newsletter contains comprehensive information on global and regional prices and trends for crude oil and petroleum products, natural gas, electricity, coal and emissions. “Market Fundamentals and Prices” also includes useful data and analyses of SE European energy markets, especially during this historical junction following the coronavirus outbreak.
On April 28 the Institute sent to its members its latest bimonthly newsletter "Market Fundamentals and Prices” (Issue No. 307), which covers the period of March-April 2020. This newsletter contains comprehensive information on global and regional prices and trends for crude oil and petroleum products, natural gas, electricity, coal and emissions. "Market Fundamentals and Prices” also includes useful data and analyses of SE European energy markets, especially during this historical junction following the coronavirus outbreak.
As usual the current issue of "Market Fundamentals Prices" contains a wealth of information including a copious reporting of the current oil market disruption, oil prices review (both international and retail in SE Europe) regional electricity wholesale prices, regional gas prices for pipeline gas and LNG, coal prices and carbon emissions.
Special mention is made on LNG in view of its growing importance to the region. As the coronavirus crisis unfolds, global LNG markets see supply curtailments at LNG production facilities as the only way to help rebalance demand and supply as natural gas prices hit record lows, and there is little demand support on the horizon with the COVID-19 pandemic still raging out of control. While the coronavirus-led plunge in crude oil prices has grabbed most of the headlines, the collapse in spot LNG prices in Asia has been just as dramatic, and just as likely to have lasting consequences. Spot LNG prices for delivery to North Asia slipped to $1.95 per mmBtu in the week ended April 24 - the lowest on record and also the first time they have closed below the $2 mark. That means a slump of 71.3% since their pre-winter peak of $6.80 per mmBtu in October last year, worse than the 70.1% fall in Brent crude oil futures from their January 8 peak this year - $71.75 a barrel - to the April 24 close of $21.44.
Figure – Global LNG Prices (July 2015 – April 2020)
Source: Bluegold Research
In terms of piped gas, the weak demand, combined with sky-high gas stocks across Europe in 2020, is partly responsible for the low Russian deliveries, while landmark changes to flows via Ukraine have altered the way gas reaches central, eastern and southeastern Europe. Flows via Ukraine into Bulgaria, Greece, North Macedonia and Turkey have effectively ceased, with Turkish Stream now replacing those volumes. And buyers changing their contractual arrangements with Russia’s Gazprom around delivery points ahead of the expiry of the company’s transit deal with Naftogaz meant a drop in flows via Velke Kapusany.
The next issue of IENE’s "Market Fundamentals and Prices” is scheduled for publication at the end of June 2020.
