Several events related to the energy market took place this week. The balance of the oil market seems to be under threat, Europe is making strategic decisions and the Norwegian gas sector is entering a maintenance period.
OPEC+.
This week, OPEC+ members announced measures to address market fluctuations. Thus, they suggested a reduction of 100,000 barrels per day to support the fall in prices. However, price data has shown that prices have since converged.
However, they have set up a system of emergency meetings. Thus, it is now possible for the President to convene OPEC+ members when he considers it necessary.
European events of the week
On the European side, the European energy ministers will meet again tomorrow. This is to examine the latest solutions to help the electricity market. In fact, gas prices are disrupting the market. In addition, the current situation puts companies in serious difficulty as they lack liquidity.
The discussions are in favor of reducing electricity demand and capping prices. These measures would provide Member States with more funds to finance aid. In spite of this, these decisions are still criticized because it seems that the aid is not enough.
Helge Haugane, vice president of Equinor, had spoken out on the subject and was reluctant to see a price cap. However, he had supported the proposal for a drastic reduction in demand.
However, European gas prices will remain high due to the indefinite closure of Nord Stream 1. Gazprom said that the interruption of supply was due to a detected leak. This implies an extension of the maintenance work initially planned.
Towards a total cut-off of the European supply?
Vladimir Putin also spoke about energy supplies to the European Union. It threatens Europe with a total cut-off of supplies if it adopts the solution of capping Russian gas prices. This could significantly increase the risk of shortages and rationing in member states.
Nevertheless, the EU has already suffered from the drop in deliveries from Russia. In fact, they have fallen by 48% since the beginning of the year.
Gas sector in Norway
In addition, the Norwegian gas sector is entering its maintenance period as established. As a result, flows will be greatly reduced. In fact, capacity will be reduced by 130 million cubic meters per day over the next week.
This maintenance of the Norwegian infrastructure may put Europe in difficulty. However, the reopening is scheduled for October.
