Close price: Momentum was so strong yesterday in the markets, that we saw a 7% rise in a single day. It’s simply scary how it can rise with ease that high and quickly at an already record breaking valuation. Then again, the energy situation we are in is equally as scary.
No one off event triggered this yesterday, but a clear growing concern on near term supply and strong cooling demand to strain the system, as we brace for a week long heatwave. While a heatwave is nice, and enjoy it, believe me, this is the last thing we needed right now as cooling systems come online to push energy demand higher. At the values we are now at, you have to seriously worry about the next price cap rise. Further government support is surely required if we remain at these levels, as energy bills are set to be staggering come October.
Opening price: Plenty of volatility right now. As I write, prices are marginally down but prices are bouncing around quickly. The UK has opened well balanced. We have 4 LNG cargoes en route to UK shores which will help supply near term. That’s however, most of the deliveries expected this month, which is 7 total. That’s not just a low figure. That’s worrying given the situation Europe is in. Update: I’m off next week, so this is a finale update for now. Look out for DB’s daily market reports to keep informed next week. See you on the other side.