Energy Market recap for 2023
As we step into 2024, let’s take a look back at the energy market in 2023.
- Article
- 02/01/2024
The year was marked by significant global events. Despite disinflation, we saw the biggest rise in interest rates for 40 years. The post-Covid period in China was weighed down by the property crisis, and the eurozone teetered on the brink of recession, while the United States managed to cope.
In the natural gas sector, there was an overall downward trend throughout the year. OPEC’s production cut helped support prices. Despite growing concerns about demand, the fundamentals remained reassuring with high inventory levels and sustained LNG and Norwegian supply overall. The market remained highly volatile and sensitive to world events, such as the risk of strikes in Australia in summer.
The oil market also had its share of fluctuations. After nearing $100, the price of a barrel of oil fell towards $75. This was influenced by various factors, including the aforementioned OPEC production cut and global events.
The power market followed the gas prices. The high penetration of renewable production led to many negative price days in summer. The downward trend was reinforced by good nuclear production, lower CO2 emission prices, and mild temperatures.
Looking ahead to 2024, key questions remain: How will Europe’s gloomy economic outlook evolve? What will the geopolitical situation be like? And how will electricity markets evolve with the increase in renewable production?
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