Energy prices are apparent normality.. One year after the start of the war in Ukraine and after reaching Ukraine historical levels last summer, gas, electricity and fuel They go back to their old prices. Prices from the end of 2022 Oil international (Brent barrel) rose from $85 to about 75, but the drop in natural gas was more abrupt, from 140 euros per megawatt hour (MWh) to just under 30 euros. Either way, it’s far from the records they reached last year of over $130 and over 300 euros, respectively. The price of gas in the Spanish market is 25 euros.
“We are a milder winter depending on the last years and past years reaction European countries’ war in Ukraine demand drops led to stocks in underground warehouses raised for the dates of the current year,” explains the president of the employers association. Sedigas, Joan Batalla. “With all our caution, a much better condition compared to the previous year. In July of last year there was a real risk of supply disruption. in the present case there will be no spikes like the previous year. In the futures market, the price in the third quarter is now Around 30 Euros per MWh“, To add.
One of the sectors most affected by the extremely high fuel prices last year is heavy industrywhich was forced stop most of their factories After the start of the conflict in Ukraine. In December 2022 and January 2023, industrial gas consumption decreased by 40% compared to a normal year (2019 or 2021). According to the industry’s employers’ association, the only reason for this decrease in consumption is demand demolition which has not yet healed. discount in april Up to 20% smoothingsame decline as during the pandemic compared to ‘customary’.
“We live one tense calm. No one is saying that in December prices will be below 30 or 25 euros per MWh because in September prices were 250. Strategies (gas uptake) yearly and whoever didn’t risk probably you don’t like this price drop”, explains the president of the employers association GasIndustrial, Veronica Rivièrewhich adds that “there is still a lot of uncertainty To see how Asia is recovering, how cold it will be next winter, and whether the drought continues. Also the nuclear ones in France and if more electricity is produced. There many economic variables can affect the behavior of the industry”.
This electricity generation precisely, it is another of the rights holders. fall in gas price due to its contagious effect on the formation light price. So, from mid-February Iberian exception didn’t need to work. Electricity in the wholesale market last month Average 71 Euros per MWh. operations manager Enerjoin, Carlos Martin Graña, focuses on reducing consumption. “We are a perfect storm “Because sellers have excess selling capacity in both gas and electricity generation thanks to renewable energy, and there are few buyers due to falling demand, so prices are falling,” he explains. “How long can this take? There are two variables. The first is what the rest of the world, especially China, will do and what consumption will do. With normal demand, current electricity prices will be €90 per MWh,” he adds.
According to the energy market and electricity bill expert from Universidad Pontificia de Comillas, Jose Luis Sancha the regulated invoice electricity – if the situation remains stable as soon as the contracts expire, prices in the free market will start to fall– around 40 Euros per MWh per month For 200 kilowatt-hours (kWh) consumers per month and 4 kW installed power so far this year. “the worst is over. it happened August of last year and far from now. The problem may come in winter because photovoltaic will be scarce and demand will increase, but we always maintaining the gas price ceiling It has been extended until December. I hope we don’t have to resort to it, but we have that protection,” adds Sancha.
The cartel of producing countries decided to reduce crude oil supply by more than one and a half million barrels per day in early April. hit the price brent barrel, a benchmark for Europe, 8% in the first session to $86.44 a barrel, but after a month and a half the price fell by 10 euros. And with that, fuels, though decreases are often slower to reflect on prices than increases. So this Thursday gasoline its average price was 1,567 euros and diesel, 1,407 euros. On Thursday, February 17, 2022, before the start of the war, prices were 1,583 and 1,474 euros, respectively. “The market is trying to provide that. supply and demand balance. A spokesperson for the Spanish Association of Petroleum Products Operators (AOP) said: “It appears that the cuts in production have not put pressure on supply to push prices higher in the face of uncertainty about economic growth.” Agnes Cardinal.