The European Electricity Market is Broken.

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Energy Prices (Daily Change)

	Up/Down	Price	Change
Crude Oil	↓	91.64	-5.37
Heating Oil	↓	3.8171	-.0928
RBOB Gasoline	↓	2.6944	-.1832
Natural Gas	↓	9.042	-.294

All prices updated at end of day using CME settlements.

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At a certain point, energy prices going parabolic opens up political options that may have been closed just days before.

“It’s on the tracks. We’re in such a price spike that it has opened up political space,” a European diplomat told Agence France-Presse news agency, speaking on condition of anonymity to explain the debate.

+Wholesale gas prices tumble as Europe prepares to intervene in energy markets – The Guardian

+Energy crisis: Ursula von der Leyen calls for ’emergency intervention’ in electricity market – euronews

Importantly, European energy markets are caught a break with UK natural gas prices down 30% in just one day. This translated into some relief in the electricity markets as both Germany and France saw power prices slide.

While prices falling may ease political pressure in the short term, it seems as though Europe will be unveiling various plans to protect households going into the winter.

Stay tuned…

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Other energy commodities joined the collective slide lower today with crude oil dropping 5% while gasoline fell 7%.

Whether this will stick is another question, but headlines touting Germany’s ability to fill nat gas storage going into the winter season are helping ease fears.

+Germany’s gas storage facilities filling up faster than planned, economy minister says – Reuters

+Britain allows Centrica to reopen Rough gas storage facility – Reuters