Markets characterised by enormous volatility

Focus week 26: The European energy markets have still not stabilised after the drastic decline in Russian gas supplies earlier this month. Fluctuations remained substantial last week.

Here and now

There were further price climbs to report in the forward market last week and the news was still dominated by the uncertainty relating to the lack of Russian gas supplied to Europe. The markets are now pricing in a winter of extreme scarcity of supply, as several countries are preparing to announce emergency plans and extraordinary measures to secure the necessary gas resources. Prices climbed also in the spot market. With an average Nordic system price of EUR 130.29/MWh for the week, the market climbed by around 30% compared to the previous week.

Read Focus here.