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Market Drivers – May
We understand the energy market can be challenging.
Our specialists compile a Market Drivers report each month.
We have highlighted Bearish drivers, expected to contribute to the market lowering, and Bullish drivers, expected to contribute to the market going higher.
- Bearish Drivers
- Outlook for Northwest storage inventory continues to maintain a wide gap to last year’s level.
- Risk around disruption of Russian supply to NWE due to double payment issues is minimized but some uncertainty is still on the table. As soon the market knows these payments go through it should open the floodgates for further downside.
- Outlook for solid LNG arrival to continue both to the UK and NWE.
- Bullish Drivers
- More maintenances in Norway, UKCS and French LNG terminals.
- Entry capacity limitation on Milford Haven.
- Forecast for less Russian gas supply amid stop of supply via Yamal-Europe and halt of transit via Sokhranivka.
- The strong risk for the cut of Russian supply to smaller buyers outside NWE if they refuse to pay in roubles