Europe's energy markets face a series of uncertainties in 2018 – some new and others lingering from 2017. Downside risk to nuclear and hydro power production offers the prospect of ongoing support to gas and coal demand. And with the Pacific basin still poaching LNG and coal shipments, European fuel prices will remain resilient. The right combination of risks could tip the gas market into oversupply in Q3 2018 but the perfect storm of circumstances required is unlikely. Consequently, Russia and Norway will maintain pipeline flows to make the most of high prices before the gas oversupply takes hold in 2019. Six things to look for in 2018: - Nuclear – the end of a chain reaction? - The rain in Spain – unlikely to avoid another hydro shortfall - France targets single gas-trading zone in November 2018 - Heightened risk for gas storage in Q2 2018 - Gas self-sufficiency falls further - Gas oversupply won't bite, but could nibble in Q3 2018
Table of contents
Nuclear – the end of a chain reaction?
The rain in Spain – unlikely to avoid another hydro shortfall
France targets single gas-trading zone in November 2018
Heightened risk for gas storage in Q2 2018
Gas self-sufficiency falls further
Gas oversupply won't bite, but could nibble in Q3 2018