As May progressed, the energy market continued to navigate a complex landscape shaped by geopolitical events, supply fluctuations, and evolving demand patterns. Here’s a breakdown of the key highlights from each week in May:
Week of May 2, 2024 – Strong Supplies Amid Persistent Tensions
Despite ongoing conflicts in the Middle East and various supply outages, overall gas supplies and storage levels remain robust, with a continued downward trend in the short term. European storage levels are strong, gas demand is down, and above-normal temperatures are reducing power demand for heating. However, geopolitical tensions and supply risks maintain a volatile market environment.
Week of May 8, 2024 – Positive Signals from Cairo Peace Talks
Market conditions improved slightly following the initiation of peace talks between Hamas and Israel in Cairo. Freeport LNG in the US restarted one of its production trains, reducing supply concerns. The UK is set to receive several LNG cargoes, and above-normal temperatures continue to reduce power demand. Despite these positive developments, geopolitical uncertainties persist, keeping the market cautious.
Week of May 16, 2024 – Industrial Demand and Supply Dynamics
Industrial and Asian demand remains subdued due to economic slowdowns and higher prices. Increased Norwegian exports benefit UK flows, and strong renewable generation limits gas-for-power demand. However, the ongoing conflict between Israel and Hamas continues to influence energy prices, with no significant progress in peace talks.
Week of May 23, 2024 – Stable Supplies Amid Ongoing Geopolitical Concerns
Gas supply is sufficient to meet UK demand during the summer, with lower demand compared to last year. Increased LNG cargoes and stable interconnector flows support the market, but geopolitical tensions and attacks on energy infrastructure in Ukraine add to market volatility. Despite these challenges, strong European storage levels help cushion the impact on demand.
Week of May 30, 2024 – Steady Supply Amid Global Challenges
Gas supply is sufficient for the UK's summer demand, projected to be 12% lower than last year. Increased LNG cargoes and stable European interconnector flows support the market, while Norwegian maintenance and low early-week wind generation add minor volatility. Geopolitical tensions and rising Chinese LNG demand are tightening global competition, pushing prices up. Market fundamentals remain bullish, suggesting securing 2024 contracts soon for better value and budget certainty.
For further insights and information on the dynamic landscape of the 2024 energy market, feel free to contact us:
☎️ 01738474630
✉️ Enable JavaScript to view protected content.
