• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Record Oil Prices Are Yet to Impact Upon the European Gas Market According to New Report

Posted on: Thursday, 4 October 2007, 09:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c70466) has announced the addition of "Monthly Price Brief - A Review of European Gas and Power Price Trends: August 2007" to their offering.

Introduction

The growing role of wholesale traded energy markets across Europe creates a greater need for players throughout the value chain to be aware of the latest market movements and developments. From the wellhead or power station gate to the end-user, volatility in the spot and forward price of power and gas is creating an increasingly challenging environment for all market participants.

Scope

An examination of the wholesale gas price trends in Europe's three key markets - the UK NBP, the Zeebrugge Hub and the Dutch TTF. An assessment of traded power prices in the UK, Belgian, Dutch, German and French wholesale power markets. Insight and analysis into the impact of wholesale markets on the wholesale / retail price interface.

Highlights

Record oil prices are yet to impact upon the European gas market. Dutch-German gas prices will become increasingly interlinked UK gas plant investment is an important structural hedge for RWE

Reasons to Purchase

Establish the current level of wholesale and retail energy prices and the fundamental drivers behind movements in the traded value of gas and power Understand how wholesale pricing impacts different facets of the value chain, identifying the potential to limit risk through hedging strategies Forecast future developments in the traded price of gas and power in order to successfully take advantage of arbitrage opportunities

Contents:

OUR VIEW

CATALYST

SUMMARY

ANALYSIS

Record oil prices are yet to impact upon the European gas market

European oil prices led the way to nominal record highs

The US still dominates buyer sentiment in the global oil market

Chinese demand growth will not outstrip vast US consumption

US inventories influence the value of crude on a global basis

Healthy oil inventories contrast with unseasonably low gasoline stocks

Healthy oil inventories contrast with unseasonably low gasoline stocks

US refineries are failing to meet summer driving season demand

America is importing crude products to meet refinery shortfalls

America is importing crude products to meet refinery shortfalls

Key product markets influence the underlying value of crude oil

Global oil market dynamics impact upon Europe's forward gas market

Oil will have a diminishing short-term impact on EU gas markets

Oil will have a diminishing short-term impact on EU gas markets

Gross retail margin impacts upon key EU energy markets differently

Despite high input costs, German gas prices show scope for significant margin

Tighter conditions in the UK make German comparison complex

Wholesale power costs and retail prices may appear attractive, but exclude high menu costs

The more transparent UK power market interface is difficult to assess accurately against an opaque German model

The UKs liberalized market has delivered cheaper household bills

UK retail pricing is competitive in comparison to Europe, but there is still room for development

UK retail pricing is competitive in comparison to Europe, but there is still room for development

UK gas plant investment is an important structural hedge for RWE

Coal-fired plants are the UK's foremost source of power generation

Coal-fired plants are the UK's foremost source of power generation

RWE's investment in UK gas plant is a sensible structural hedge

The UK offers the greatest opportunity for profitable fuel switching

RWE's German heartland offers secure coal generation margins

RWE lacks the downstream Dutch presence to offset upstream risk

Dutch-German gas prices will become increasingly interlinked

German and Dutch gas markets show signs of price co-movement

German gas prices are linked to the TTF at the near end of the forward curve

The TTF market and EGT hub in northern Germany exhibits a stronger price correlation

Dutch-German mid-curve gas prices exhibit greater variance

Dutch-German mid-curve gas prices exhibit greater variance

Longer term, however, Dutch-German gas prices begin to re-align

Longer term, however, Dutch-German gas prices begin to re-align

Long-term UK domestic supply contracts are a viable route to market

Longer-term procurement offers greater surety in a bull gas market

UK regulatory changes will promote residential supply innovation

Seasonality plays a pivotal role in wholesale procurement strategy

Long-term domestic supply contracts are a viable route to market

NW European power prices took a sharp downturn in July 2007

Belgian power prices drift, but the forward outlook stays firm for Year-Ahead contracts

French baseload price movements illustrate short-term uncertainty

Germany followed the pan-European trend in baseload power as price instability returned

Dutch power prices were characterized by near end fluctuations

Baseload prices remain stable in the UK, despite flooding and severe weather in July 2007

NW European gas prices are bucking their recent downward trend

Bullish sentiment dominates the NBP as UK gas supply concerns fall back into the spotlight in July 2007

Stronger Dutch prices highlight the bullish sentiment of gas traders across Europe in the short term

Belgian gas prices firm at the far end of the curve

APPENDIX

List of Figures

For more information visit http://www.researchandmarkets.com/reports/c70466

Source: Datamonitor

Source: Business Wire

More News in this Category