January WTI (West Texas Intermediate) crude oil futures trading on NYMEX fell for the fourth consecutive day in yesterday’s trade. Prices fell by 0.93% to $37.16 per barrel. Crude oil prices fell due to panic selling despite the fall in US crude oil inventory. The United States Oil ETF (USO) and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) mirrored crude oil prices in yesterday’s trade. These ETFs fell by 1% and 1.9%, respectively. The EIA (U.S. Energy Information Administration) published its weekly crude oil inventory report yesterday. The government data estimated that US crude oil inventory fell by 3.6 MMbbls (million barrels) for the week ending December 4. Likewise, the API (American Petroleum Institute) reported that crude oil inventory fell by 1.9 MMbbls for the same period. Market surveys from Platts projected that crude oil inventory would fall by 1.2 MMbbls during the week.
UPM Energy answers to the urgent need for power flexibility with a revolutionary energy optimisation and trading service, Beyond Spot, helping industrial businesses thrive in the energy market disruption. The service helps industrial companies solve the most common pain points of energy management: energy cost optimisation and risk management. At the same time, it answers the growing need for flexible power to balance the power grid due to the fast increase in the supply of renewable energy.
The energy market is in the middle of disruption. Tightening climate goals push countries to shift towards renewable energy, which pushes the power prices down and shakes up the market dynamics. The increase in renewable energy creates dramatic fluctuations in energy supply, posing significant financial risks for large energy consumers and causing new challenges for electricity grids. In order to cope with the volatile renewable energy supply, investments in electricity grids are required, but part of the solution lies in more efficient use of flexible consumption assets through energy optimisation. Regulators and transmission system operators also aim for better balancing of supply and demand with the help of new regulation such as the fifteen-minute imbalance settlement coming in 2023 in the Nordics.
While everyone is aware of the shift towards renewables, not all industrial companies have realised the major impacts it has on their business. “Large industrial energy consumers harnessing their asset flexibilities can play a key role in solving the challenge of volatile supply and demand in the electricity market. With energy flexibility, large industrial companies can also help balance the electricity market and thus decrease the need for costly investments in the grid. For companies, energy flexibility is more valuable than ever, and the value will increase the more there will be renewables,” says Anne Särkilahti, Director, Business Services at UPM Energy.
UPM Energy Beyond Spot service empowers companies to maximize the benefits of their flexible energy consumption
UPM Energy´s Beyond Spot service gives industrial companies rapid access to operate their energy operations smoothly in the new market dynamics. “As energy can be one of the costliest expenses of a company, those who successfully manage their energy flexibility can reach remarkable cost savings and generate new revenue streams from energy trading. Thus, energy optimisation service is needed more than ever,” states Särkilahti.
The Beyond Spot service consists of three key elements: energy flexibility assessment, energy management and trading tool implementation, as well as continuous energy cost and revenue optimisation service. These elements empower companies to tap into the opportunities of their energy flexibilities and to automate their energy process – both critical to success in the new energy market dynamics. Within just a few months, customers can reach energy cost savings and new revenue streams from trading the available energy flexibilities.
With decades of experience in combining energy markets with industrial processes, UPM Energy has developed the Beyond Spot service together with customers. The service allows industrial companies to focus on their core business, knowing their energy operations are supported by experienced energy professionals at UPM Energy.