Commodity Market Report
Mexico power short-term outlook Q3 2018: Will power sector fuel constraints abate?
Report summary
After experiencing a particularly poor supply scenario in 2018, the Mexican gas landscape is radically changing. Results of years of investment and major pipeline buildouts will become palpable in 2019. As a result of a vastly improved gas supply scenario, wholesale power prices will fall precipitously in 2019 and settle into a “new normal“ by 2020. The rapidly shifting market landscape in both commodities is a godsend to consumers, who will appreciate respite from the record high prices of recent years, but will prove challenging to suppliers, who must learn to operate in a low price environment to remain competitive. Opportunities are becoming less obvious and more regionalized.
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