New year, new European energy market - price and policy whipsaw
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Following a month of record-shattering energy price action in Europe, UK natural gas prices briefly traded into negative territory on the first day of the new year.
The negative price was for "day ahead" delivery, on the back of the warmest Jan 1 on record (as measured in St. James Square, London); the "month ahead" gas price most often discussed by commentators, remains well into the $20s / mmbtu and up ~300% from the same time last year, though down 50%+ from recent highs.

On the back of this record volatility, European policy makers in Germany shuttered half the Country's nuclear power supply over the weekend, while counterparts in the Netherlands reduced coal power production by up to 65%.
All of this coming weeks before EU bureaucrats are set to release new policy-linked definitions by energy source, a "taxonomy," that will determine which sources of energy production are acceptable for investment in the Union.
In addition to committing to shutting down its entire nuclear fleet, a move Tesla's (NASDAQ:TSLA) Elon Musk has vocally opposed, Germany has actively campaigned against nuclear energy being categorized as "sustainable" under the to-be-released policies.
However, producers like France have lobbied for the categorization of nuclear as "sustainable," and according to a draft report, it appears nuclear energy and natural gas will be included in the "sustainable" category.
While gas (NYSE:EQNR)
(NYSE:RDS.A)
(NYSE:XOM)
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(NYSE:NRT) and power prices in Europe will be determined by temperatures for the rest of winter, by defining gas and nuclear (NYSEARCA:URA)
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(NYSE:CCJ) (UEC) (OTCPK:SRUUF) as sustainable, the Continent may be making a significant pivot in energy policy.