UK rejects zonal energy pricing
The British government is not moving to a zoned system of wholesale energy prices, but will instead try to gain greater control over the planning process in order to determine where to build clean energy infrastructure. The UK, with some of the world's highest electricity prices, struggles to find a way to build wind and solar farms, as well as transport them to the various parts of the country. The government had looked at dividing the country into zones with a pricing system based on demand and supply, hoping to encourage businesses to move closer to renewable sources of energy, and potentially reduce the cost for transmission.
Gas prices in the Netherlands and Britain are stable with warmer weather forecast
The Dutch and British wholesale prices of gas traded within a narrow range Wednesday morning, amid the expectation of warmer weather conditions and stable supplies. LSEG data shows that the benchmark Dutch front-month contract was up 0.07 euros to 34.65 Euro per megawatt hour or $11.92/mmBtu at 0818 GMT. The Dutch day-ahead contracts was down 0.17 Euro at 34.17 EUR/MWh. The British day-ahead contracts was up 0.25 cents at 82.50 pence/therm. In a daily note, LSEG analyst Wayne Bryan stated that he expects TTF day-ahead price to remain within its recent range without any significant deviation based upon current fundamentals.
EIA: US oil production will be lower than expected in 2025 due to falling prices
Energy Information Administration's monthly report on Tuesday predicted that the U.S. would produce less oil by 2025 than originally expected, as lower oil prices have caused U.S. producers this year to reduce their activity. In its report on short-term energy forecast, the EIA stated that it expects to see 13.37 million barrels of oil per day produced by the world's biggest oil producer in 2025. This is compared to last month's estimate of 13.42 millions bpd. The U.S. is expected to produce 13,37 million barrels per day in 2026. This is the same as the previous estimate.
Palm oil trades in a sideways fashion as Dalian oils and Chicago soyoil counter each other.
Malaysian palm futures were in a narrow range on Thursday as the strength of rival Dalian oils supported gains, while the weakness of crude oil and Chicago soybean oil limited them. At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for September delivery gained 12 ringgit (0.3%), to 4,074 Ringgit ($965.17) per metric ton. On Wednesday, the contract increased by 2.37%. Anilkumar bagani, research director at Mumbai-based Sunvin Group, said that the crude palm oil futures market was trading sideways, as the bullish momentum of Chinese vegetable oils in Asian hours supported it.
As Wars Rage, Middle East's Waning Influence on World Oil Prices Exposed
The contained move in oil prices during the Israel-Iran war highlights the increasing efficiency of energy markets and fundamental changes to global crude supply, suggesting that Middle East politics will no longer be the dominant force in oil markets they once were.The jump in oil prices following Israel's surprise attack on Iran was meaningful but relatively modest considering the high stakes involved in the conflict between the Middle East rivals.Benchmark Brent crude prices, often considered a gauge for geopolitical risk…
Polish Parliament approves liberalisation in wind farm regulations
The Polish Parliament approved legislation that eases rules for building onshore wind farms. According to the government, this is an important step in boosting renewable energy production and lowering electricity prices. In a vote held late Wednesday night, the rules reduced the distance between planned installations, and residential areas, but kept permitting restrictions for projects near protected natural areas. Bill will include clauses that will freeze energy prices until the end the year for householders, as well as incentives for municipalities and home owners in the areas nearest to new wind farms.
Miliband pledges to lead the way in clean energy and demand corporate net-zero strategies
Ed Miliband, the energy secretary, said that Britain is on the right track by cutting emissions and investing in a green economy. He also pledged to press large companies to explain how they will align their business with this shift. Opposition parties are putting pressure on the government over perceived costs associated with the move to net zero emission at a moment when energy prices remain high after Europe has shifted away from Russian imports due to Moscow's invasion of Ukraine in 2022. Miliband, speaking to climate investors…
EU agrees on loosening gas storage regulations
After concerns were raised that the EU's earlier rules regarding filling gas storage could have led to an increase in energy prices, the EU member states and the EU parliament reached agreement on a loosening of the EU's regulations on filling. The European Commission announced the agreement on Tuesday. In 2022, the EU introduced its gas storage regulations to ensure that EU countries have a buffer during winter. This was after Russia had cut off gas deliveries in response to its invasion of Ukraine. The resultant spike in gas prices across Europe caused by this action.
Hungary's Orban calls on EU to lift Russian energy ban amid US/Iran conflict
Hungarian Prime Minster Viktor Orban urged on Sunday the European Union not to impose a ban on Russian Energy due to the expected increase in energy prices after the US bombings of Iran. The European Commission proposed on Tuesday a legally-binding ban on EU imports from Russia of gas and liquefied gas by 2027. Legal measures were used to ensure that EU members Hungary, and Slovakia could not block the plan. The proposals outline how the EU plans to put into law its pledge to end decades-old relations with Europe's former number one gas supplier following Moscow's invasion of Ukraine in 2022.
GRAINS-Chicago soya beans slip after rally, corn and wheat rise
Chicago soybean futures eased on Wednesday as traders booked profit following a three day price rally, driven by soyoil strength and the broader market for energy. Meanwhile, ongoing tariff uncertainty limited further gains. The most active soybean contracts fell 0.23%, to $10.72 a bushel. However, it was still near its one-month high. The rising energy prices, fueled by the escalating tensions in Israel and Iran, have supported agricultural commodities like soybeans and corn. The higher crude oil price makes soyoil, corn and other biofuel feedstocks more competitive. Brent crude futures increased 0.3%, to $76.71 per barrel as of 0440 GMT. U.S.
Palm gains on Chicago's crude oil and soyoil rally
Malaysian palm futures rose on Monday for the third consecutive session, following gains in Chicago soyoil, after the U.S. proposed increased biofuels blend, and supported by crude oil rally, following tensions in Middle East. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery had gained 156 Ringgit or 3.98% to 4,078 Ringgit ($961.79) per metric ton. The U.S. administration of President Donald Trump proposed on Friday that oil refiners increase the amount biofuels they must mix into the nation's gasoline over the next two-year period.
Palm oil prices rise on the back of bargain-buying, Chicago soyoil
The price of palm oil in Malaysia has recovered on Thursday, after two consecutive sessions of losses. This is due to the strength in Chicago soyoil and bargain-buying. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for August delivery had gained 35 ringgit (0.91%) to $3,874 ringgit (916.71 dollars per metric ton). Anilkumar bagani, head of commodity research for Mumbai-based Sunvin Group, said that initially, the CPO futures opened in a mixed or lower trend. However, they experienced a rebound due to bargain purchasing, after a sharp rise in energy prices, and signs of stability in Chinese oil futures.
Metal industry group claims that new EU State Aid rules do not help
A metals industry group wrote a letter to the European Commission on Friday, saying that plans to overhaul state aid rules ignore heavy industry, which is critical for processing energy transition metals. They fail to mitigate energy costs, while green rules may penalise them. After a public hearing on its proposal from February, the Commission will announce new rules for state aid on 26 June. The group sent a letter to the Commission president Ursula von der Leyen, and the commissioners responsible for climate, energy, industry and competition this week.
Profit taking on palm oil as it slips against inferior edible oils
Malaysian palm futures continued to fall on Thursday. They followed the weaker edible oils in Chicago and Dalian, as well profit-taking actions. By midday, the benchmark contract for palm oil delivery in August on the Bursa Derivatives exchange had fallen 29 ringgit or 0.73% to 3,919 Ringgit ($924.29) per metric ton. Anilkumar bagani, the head of research for Mumbai-based Sunvin Group, said that palm oil futures had been trading lower due to profit taking, low energy prices, and weakness in other vegetable oil markets, such as those in China and the U.S. Dalian's palm oil contract, which is the most active contract in Dalian, fell by 0.91%.
Germany examines energy system to lower costs
Katherina Reiche, Germany's Economy Minister, said that the government would analyze Germany's energy consumption and supply in order to reduce costs and integrate more gas production. The impact of energy prices on the economy, industrial competitiveness and the environment were some of the top issues at the federal election in February. Germany relied for many years on Russian gas that was cheap, but the Ukraine conflict forced it to switch to renewable energy. The new coalition government promised to take measures to reduce prices.
Financial Times - 2 June
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. BP has received early interest in its sale of Castrol, the lubricants division, from both private equity firms and other industry players, including China’s state-owned Citic. However, some bidders are willing to accept offers lower than the $8 billion-plus expected range. AstraZeneca announced positive results from a trial for a drug to treat breast cancer that stops mutating tumors before they grow. The company hopes that this will be part of a portfolio that propels it to the top of oncology.
Industry warns that high energy costs are a threat to the future of UK manufacturing
Make UK, an industry group, said that Britain must reduce its industrial energy bills which are among the highest in advanced economies to achieve its goal of a healthy manufacturing sector. The government of Keir starmer is developing an industrial strategy that will put British manufacturing, which has been hit by Brexit and soaring energy prices as well as global trade wars, on a firm footing in the coming years. The manufacturing association Make UK has called for the cancellation of climate levies on industrial energy prices and the adoption of a fixed price.
Millions of Britons will see their energy bills drop as the price cap drops 7%
After Ofgem announced that its domestic price cap will fall by 7% in July to reflect lower wholesale prices, millions of British households can expect lower energy bills. The government is under pressure to ease the cost of living squeeze and this reduction comes as welcome news. Global wholesale energy prices have fallen. "While this is the primary cause, changes in supplier business costs also had an impact on falling energy prices," Ofgem stated in a press release. The regulator's formula for calculating the price cap includes wholesale gas and electricity prices.
Deutsche ReGas Receives EU Funding for Baltic Sea Coast Hydrogen Project
Deutsche ReGas on Wednesday said it will receive 112 million euros ($126.97 million) worth of public grants from the European Union's Hydrogen Bank for a renewable hydrogen project at Lubmin on Germany's Baltic Sea coast.The grant comes under EU funding schemes to promote electrolysis processes that use carbon-free electricity to kick-start a local economy producing hydrogen as an alternative to fossil fuels.ReGas said the hydrogen production at Lubmin, for which the funding will be spread over 10 years, can cut 1.6 million metric tons of carbon dioxide.The EU subsidy is designed to help to close price differences between green hydrogen production
Cornwall Insight reports that Britain's energy cap will fall by 7% in July.
Analysts at Cornwall Insight predicted that Britain's energy price cap would fall by 7% this July, due to lower wholesale prices. The government would welcome a drop in energy prices, as it is under pressure to keep its promise to reduce household costs. However, analysts predicted a larger fall, of 9%, last month. Craig Lowrey said that this was due to "an increase in energy wholesale markets, and updated assessments of various cost inputs, including policy costs, and network costs". Since the end April, wholesale gas prices in Britain have increased by around 10%.
