Crisis in oil market in spite of new deal

Focus week 17: The international oil markets remain characterised by low demand. The oil price fell to its lowest level for around 17 years last week in spite of the new deal between OPEC and Russia.

Here and now

For the third week in a row there were climbing prices in the long-term contracts in the Nordic energy market, while there were slight falls in the short-term contracts. The weather forecasts have changed direction a few times in the last week, the oil price is falling steadily, but the carbon emissions allowance market has made another price jump following the news on Tuesday of lower levels of French nuclear production for the remainder of the year. At closing on Monday, the Nordic Q3-20 contract cost EUR 9.41/MWh, EUR 0.09/MWh less than last week. The YR-21 contract has climbed by EUR 0.95/MWh and is now at EUR 23.55/MWh.

Read Focus here.