Daily Energy Report – 5th January 2023Welcome to our daily energy report

The European gas and power markets ended the day on a lower note on Wednesday, due in part to a number of factors that have contributed to a strong supply.

Milder temperatures across the region have led to a drop in demand, helping to maintain storage levels and keep prices in check. Additionally, wind speeds are expected to remain above the seasonal average throughout much of January, which will likely limit the need for gas as a power generation source.

One major factor contributing to the current strength of the supply is the increased output of French nuclear power. The state-owned utility company EDF pulled 12 reactors offline over the holiday period, but since then has ramped up production to levels above 42GW.

This additional energy source has helped to meet demand and keep prices from rising.

Another factor that is expected to bolster the gas and power supply in the coming weeks is the arrival of several liquified natural gas (LNG) cargos at UK shores. These shipments are expected to arrive over the next 4 weeks, further strengthening the overall supply and potentially limiting any significant price movements in the short term.

Overall, the supply picture in Europe looks to be in good shape, with a combination of mild temperatures, high wind speeds, and increased energy production helping to meet demand.

This is good news for consumers, as it is likely to keep prices stable in the near future. While it is always difficult to predict exactly how the markets will perform, it seems that the current conditions are favorable for maintaining a strong supply of gas and power in Europe.