Resonance Podcasts

Energy Markets Plateau For The Moment, While Structural Dangers Remain A Risk To Higher Prices

Jeremy Nicholson, Henry Homer

In this week’s Resonance energy market podcast episode, as markets plateau, Jeremy Nicholson talks to Alfa’s Henry Homer about the structural dangers that remain and the risk of a rapid return to higher prices.  

Topics explored include:

  • As we enter Q2 we see a more supply-based market where equilibrium is returning.
  • Joint European energy purchasing raised during the height of the energy crisis subsides, for now. 
  • With shocking prices over the energy crisis, many buyers wonder if they should wait or move now on contracts, prices, and where. 
  • A supplier market remains, but what does that mean? 
  • Recent articles in the market press talk of gas oversupply, but what does the fragility of Europe’s gas balance mean in terms of the risk of a rapid return to higher prices? 
  • Supply issues from Norway and France discussed in previous episodes persist, creating uncertainty across Europe, an issue compounded by nuclear generation in Germany being consigned to history.
  • This sees a huge reliance on LNG, intensifying risk between now and 2025, sustaining premiums in prices at least until then.

 This episode of the Resonance was recorded on 20th April 2023.