This week the UK energy market experienced significant turbulence following the announcement of an extended planned outage for a major gas processing plant at Norway’s Nyhamna. The outage has been extended by almost a month moving from 21st June to mid-July due to problems with the plant’s cooling system.
This unexpected extension triggered a highly volatile pricing environment. Many providers hastily adjusted their prices, while certain suppliers even suspended pricing altogether.
This development marks the first major price reaction and reflects a growing apprehension in the market since the energy crisis.
Although we have enjoyed a fortunate 18-month period of declining prices, this event may very well serve as a turning point as it re-awakens the dormant nervousness within the market, further bolstering our previous assertions that prices are likely to rise in the approaching winter months.
The market appears to have now regained some stability as of this morning. Nevertheless, it is important to acknowledge the possibility of a resurgence, which could potentially lead to a similar situation.
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