Everyone expected so much of 2020, setting it at an important milestone for the World with the globalization peaking and the technology and social barriers being tested constantly. On the other hand, the long trade war between US and China was weighing on the markets and a recession was on the edge. Despite that, no one could predict that a virus would change our reality so quickly and force borders to close and realities to be redefined.
At Magnus Commodities, we try to cover important and relevant topics around the energy sector in order to bring transparency and informed articles. On the following lines, I invite the reader to a journey of the main topics that shaped and will shape the energy sector and the energy commodities.
As anticipated before, the main was the impact of the COVID-19 in the market. We focused to cover relevant impact of the energy commodities and on Spanish and Italian markets but also on some regulated changes made exceptionally by governments to help consumers to deal with the state of alarm imposed in the first national lockdowns:
On the other hand, the COVID-19 highlighted the importance of climate change and the priority for the green transition. It also gave a push to important decisions such has the coal-phase out, the increase of renewable energy in the energy mix and the importance of the ambitious Climate Plan at a European level to achieve as soon as possible the carbon neutrality:
The strong push of the European Union with the Green Deal put the spotlight important solutions and topics to achieve the ambitious goals set:
Geopolitics plays a key-role in the energy markets so Magnus also had the opportunity to cover some articles around that thematic such as the relations between Russia and OPEC or the US elections.
After the minimum levels achieved in 2020 in terms of commodity prices, the market is showing strong signs of recovery, fuelled by the news around vaccines that appeared and started to be administrated around the World. Along with the ambitious climate targets set by the EU, it will be vital to define robust plans for short, mid and long-term.
2020 was shaped by flexibility, quick adaptation, and hope. 2021 opens a new chapter where, resilience and creativity will play an important role to recover and to be back on track after the slump caused by the pandemic. For Magnus Commodities, it will be a crucial year to be side by side with our clients in order to help them to look ahead and define their paths towards a brighter and greener future.
Jorge Seabra | Energy Consultant