Short-term power prices have remained very high on the continent in recent days due to low wind generation, with German baseload for Wednesday for example clearing at €164.81/MWh. Despite this strength, prices for January and beyond have continued to decline, driven by forecasts of much warmer-than-average temperatures and windy conditions across Northwestern Europe from this weekend onward. Hopes that ongoing peace talks could increase Russian energy exports have faded somewhat, and with weather potentially turning more supportive in the coming weeks, we see current price levels as a good opportunity to increase hedging for the coming quarters. The longer-term outlook remains bearish, thanks to expectations of rising global LNG supply, which is likely to leave the gas market oversupplied. 

Prices rose modestly week-on-week as uncertainty from stalled Russia-Ukraine peace talks and ongoing attacks on Russian energy infrastructure lent support. However, lingering concerns over a global oil oversupply, reinforced by rising US inventories, kept gains limited. 

As expected, OPEC+ agreed to keep oil output unchanged in Q1 26, slowing its push to regain market share amid weakening demand, signs of global oversupply, and ongoing uncertainty over Russian sanctions. 

EU Commission accused of lack of transparency for new urgent cuts to sustainability regulations.

The EU Ombudsman has concluded that the EU Commission process to advance the Omnibus package significantly reducing the CSRD and CSDDD scopes, and introducing CBAM changes, failed to follow its own rules on transparent and evidence-based lawmaking. Prompted by complaints by climate and human rights campaigners, the inquiry found that the Commission failed to justify the urgency of the measures which will shape the future of EU corporate sustainability reporting.

With a sub-24-hour internal consultation conducted across a weekend, and no public consultation prior to proposing regulation cuts,  the EU Ombudswoman, Teresa Anjinho, stated that all the "shortcomings amounted to maladministration".