Baker Hughes reports that US oil and gas drillers have cut back on rigs in the US for the first time in 3 weeks.
Baker Hughes, a leading energy services company, said that the U.S. oil and gas companies have cut back on the number of rigs for the first time since three weeks. The number of oil and gas drilling rigs, a good indicator of future production, dropped by four in the week ending October 31 to 546, the lowest level since September. Baker Hughes reported that the total number of rigs is down 39, or 7% from this time last. The report said that oil rigs dropped by six this week to 414, their lowest since September. Gas rigs, on the other hand, rose by four, to 125, which is their highest level since August 2023.
Spot prices are affected by the increased supply of wind and nuclear energy
The European power price fell on Wednesday, as the availability of nuclear and wind generation increased while demand was flat. The LSEG analysis concluded that the thermal capacity was higher and that exports from Germany, the main producer, were indicated for tomorrow. LSEG data shows that the French baseload price for Thursday's delivery was 66 euros ($76.97), down 17.5% on its previous close. The German equivalent day-ahead contract fell 7.9% to 83 Euro/MWh. German wind production is expected to increase to 35.2 GW per day from 30.7 GW. Overnight, the French nuclear capacity increased by three percentage points to 74%.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleets for the second week running.
Baker Hughes, a leading energy services company, said that U.S. firms added oil and gas rigs this week for the second consecutive week for the first since September. The number of oil and gas drilling rigs, a good indicator of future production, increased by two in the week ending October 24 to reach 550, its highest level since June. Baker Hughes reported that despite this week's increase in rigs the total number of rigs was still 35 rigs or 6% lower than this time last year. Baker Hughes reported that oil rigs increased by two this week to 420, while gas-rigs remained at 121.
German spot prices fall on strong wind supply
German spot prices for Friday were lower than the French equivalent price, as wind production is expected to increase and demand is seen declining. LSEG analyst Naser Hazemi stated that Germany's wind power production is increasing, and the solar industry has also increased. Lower demand, coupled with a higher supply, will reduce residual load. France, on the other hand, may become a net exporter, due to its bullish economic conditions. By 0956 GMT, the German baseload day-ahead contract was down 65.2% to 27.40 Euros ($31.95). The French equivalent contract increased by 77.8% to 32 euros/MWh.
Spot prices plunge as German wind floods supply
European power prices dropped sharply on Wednesday, as forecasts of a doubled German wind generation in the next day's time outweighed slight increases in demand. Also, French nuclear availability was tighter. "Wind energy production is increasing not only in Germany, but also throughout the Central West Europe region, reducing significantly the residual load average," said LSEG Analyst Naser Hashemi. He was referring to the low demand for thermal energy output. LSEG data shows that the French baseload price for the next day was 16 euros (18.66 dollars) per megawatt-hour (MWh) as of 0845 GMT. This is a 76.8% decrease from the previous closing.
German wind downturn boosts spot prices
The European immediate prices were lifted on Tuesday by the expectation of a sharp decline in German wind energy generation. This will turn the country into an importer the next day. The German signal is positive. LSEG analyst Xiulan Xiulan said that wind supply has decreased significantly. He also cited rising German demand. LSEG data shows that the French baseload price for the day was 69 euros ($80.47 per megawatt-hour (MWh) as of 0740 GMT. This is a 39.4% increase. The German day-ahead range was 119-124 Euros/MWh, with a closing price of 63.3 Euros. LSEG data shows that Germany's wind power output was 17.6 gigawatts on Wednesday.
Spot prices fall on German wind production
The European spot price for Tuesday dropped as the German temperatures are expected to increase and wind power production will rise. LSEG data shows that the German day-ahead price was 63.25 Euros ($73.76 per megawatt hour) at 0929 GMT. This is down 17.9% compared to Friday's closing price for Monday delivery. LSEG data revealed that the French baseload price for the day was 45 euros/MWh. On Friday, the Monday price was not traded. Wind and solar are increasing in Germany. According to LSEG analyst Xiulan He, the lower wind in France, Austria, and Germany is increasing residual load.
Increased wind production will weigh on Monday's spot prices
The strong increase in regional wind energy supply will likely bring down spot prices on Monday. The German and French baseload power contracts for Monday had not begun trading at 0824 GMT Friday after closing respectively at 108 and 90 euro per megawatt-hour on Thursday, LSEG's data showed. LSEG analyst Xiulan he said that the German residual load was expected to decrease by 16,2 gigawatts on Monday. The rest of the region is also experiencing losses due to the increase in wind energy supply. LSEG data shows that German wind power production is expected to increase by 16.9 GW Monday to 32.6 GW. French wind power is also projected to grow 8 GW from 12.6 GW.
Spot prices drop on increased wind supply
On Monday, the German Tuesday spot rate fell as it was expected that a rise in wind power would offset an increase in electricity demand. LSEG data shows that the German baseload electricity for Tuesday at 0924 GMT was 143.80 Euro per megawatt-hour, down 0.8% compared to Friday's closing price for Monday delivery. LSEG data revealed that the equivalent French contract was 90 euros/MWh. The Monday contract was not traded on Friday. LSEG data indicated that the German wind output is expected to increase by 5 gigawatts on Tuesday to 9.5 GW. The French output, however, was forecast to be 350 megawatts at 6.4 GW.
Baker Hughes reports that US drillers have cut back on oil and gas drilling for the first time in six weeks.
Baker Hughes, a leading energy services company, said that the U.S. oil and gas companies have reduced the number of oil rigs in operation this week, the first time in six weeks. The number of oil and gas rigs, a good indicator of future production, dropped by two in the week ending October 10 to 547. Baker Hughes reported that the total number of rigs is down 39, or 7% from this time last. Baker Hughes reported that oil rigs dropped by four this week to 418, while gas-rigs increased by two to 120 – their highest level since August. The Permian Basin, which is the largest oil-producing shale production formation in the United States, saw its rig count drop by one this past week, to 250.
Venture Global sinks after BP's arbitral win raises concerns over pending disputes
Venture Global's shares fell by about 20% Friday, after the U.S. exporter of LNG lost an arbitration against BP for failure to meet a long-term contract. This stoked fears of similar verdicts with other customers who are suing for billions of dollar compensation. The recent victory of Venture Global in an arbitration against Shell was a shock to BP. BP wants more than $1 billion plus interest and legal fees in damages. The final amount will be determined at a separate hearing scheduled for 2026. Venture Global, second largest U.S. supplier of liquefied gas…
Low wind supply lifts Monday spot prices
The spot price for Monday is expected to rise due to a sharp decline in the regional wind energy supply. LSEG data shows that the German Monday baseload electricity contracts reached 145 euros per Megawatt-hour at 0912 GMT Friday, a 51.8% increase from Thursday's closing price. LSEG data revealed that the equivalent French contract was not traded. Riccardo Paraviero, LSEG analyst, says that the German residual load will increase by 17.3 GW, which is slightly higher than the rest of Europe, mainly because wind power has decreased. LSEG data shows that German wind power production is expected to drop by 16.9 gigawatts on Monday to 4.4 GW.
Spot prices are affected by a combination of falling demand and increased supply
On Wednesday, a higher supply forecast led to a rise in the wholesale electricity prices across Europe. Demand is expected to decrease. The main reason for the decline in German residual load is due to increasing wind power supply. The availability of thermal energy in Germany is increasing across the board. LSEG data show that the French day-ahead power contract, which is a baseload electricity contract, was down 8.6% to 74 euros ($86.01), while its German counterpart was not traded with a price of 109 euro/MWh after a close of 127.8 Euros, LSEG said. On Thursday, wind power production in Germany will increase 63% from one day to the next to 14 gigawatts.
Wind supply is falling, and so are spot prices.
Prices in Europe are rising due to a sharp decline in wind energy supply, and demand is also increasing in Germany after the return of the Unity Day holiday. LSEG data shows that the German baseload contract for Tuesday was 139.75 Euros per megawatt-hour as of 0900 GMT. The equivalent French contract was 85.75 euros/MWh. The Monday contract wasn't traded on Friday. LSEG data revealed that the French day-ahead price for Friday was 46.60 Euros/MWh. The German equivalent price during the Unity Day holiday was 66.80 Euros/MWh. LSEG data shows that German wind power production is expected to fall by 23.7 gigawatts on Tuesday to 8 GW. French output will drop from 1.6 GW down to 1.4 GW.
Baker Hughes reports that US oil and gas drillers have reported the same number of rigs for the week, 549.
Baker Hughes, a leading energy services company in the United States, said that this week U.S. firms kept the number oil and gas rigs almost unchanged. In the week ending October 3, the rig count, including a miscellaneous group, which is an early indicator of future production, remained at 549. Baker Hughes reported that the total number of rigs was 36, or 6.2% lower than this time last. Baker Hughes reported that oil rigs dropped by two this week to 422 while gas rigs increased by one to be at 118. Oil and gas rig counts declined by approximately 5% in 2020 and 20% in 2030 as lower U.S.
French spot prices drop on the back of gains in regional wind supplies
The French spot electricity contract fell on Thursday as the wind supply in the region is expected to increase and the demand in Germany is expected to drop sharply with Unity Day. By 0831 GMT, the French baseload day-ahead was down 19.1% to 42.50 Euros ($49.95) per megawatt hour. The German equivalent contract was not traded with a bid of 60 euros/MWh. LSEG data revealed that the German wind power production was expected to increase by 9.7 gigawatts, to 18.7 GW. The French wind power production was projected to grow by 3.2 GW, to 6.2 GW. LSEG analysis shows that German wind energy supply will increase over the weekend, to 44 GW. It then falls on Monday and Tuesday down to 34 GW.
German spot prices are affected by the higher wind and solar supplies
The German spot price of electricity for Thursday dropped as the wind and solar power supply in Germany is expected to increase, accompanied by lower demand predictions. German baseload for the day ahead fell by 28.6%, to 104.50 Euros ($122.82), per megawatt-hour (MWh), at 0827 GMT. The French baseload for the day ahead was up 1.9% to 54 euros/MWh. LSEG data indicated that German wind power production was expected to increase by 2.2 gigawatts, to 9 GW. French wind power is predicted to remain flat at 3 GW. LSEG data shows that solar power production in Germany is increasing by 270 Megawatts, to 10.8 GW.
Baker Hughes reports that the US oil and gas rig counts have reached their highest level since June.
Baker Hughes, a leading energy services company, said that U.S. firms added oil and gas rigs this week for the fourth consecutive week for the first since February. The number of oil and gas drilling rigs, a good indicator of future production, increased by seven in the week ending September 26 to 549, its highest level since June. Baker Hughes reported that despite this week's increase in rigs the total count is still 38 rigs or 6% lower than this time last year. Baker Hughes reported that oil rigs increased by six this week to 424, the highest level since July. Gas rigs, on the other hand, fell by one, to 117, which is their lowest level since July.
Baker Hughes reports that the US oil and gas rig count has reached its highest level since June.
Baker Hughes, a leading energy services company, said that U.S. firms added oil and gas rigs this week for a fourth consecutive week for the first since February. In the week ending September 26, the oil and gas rig counts, a leading indicator of future production, increased by seven, to 549, its highest level since June. Baker Hughes reported that oil rigs increased by six this week to 424, the highest level since July. Gas rigs, on the other hand, fell by one, to 117, which is their lowest level since July. Oil and gas rig counts declined by around 5% in 2020 and 20% in 2023, as lower U.S.
French spot electricity prices rise on windpower decline
On Thursday, the French spot electricity contract was higher for Friday due to lower wind power production in the region. By 0836 GMT, the French baseload day-ahead contract was up by 34.4% to 77 euros per megawatt hour (MWh). The German equivalent contract, which closed at 77.25 euro/MWh last Wednesday, was not traded. Analysts at Engie’s Energy Scan said that after a period in which spot prices were very low due to factors such as strong wind output and higher hydro, they are now strengthening and expect them to continue to rise, especially with the increase of exports.