How Super El Niño Hits Power Markets: Analyst Reaction
· 18 min
Episode How Super El Niño Hits Power Markets: Analyst Reaction
El Niño has officially arrived, and there are concerns this time that the weather phenomenon might be more intense than most years, a so-called “super” event. With Pacific Ocean temperatures now exceeding the threshold for one of the strongest forms of the weather pattern, the risk of prolonged heat, drought, low wind and other disruptive weather events is rising across multiple regions at once. For commodity and power markets, that can mean greater volatility, from wind droughts in Europe and hydropower stress in the Nordics to shifting hurricane risks in the US. Yet El Niño can also ease pressure in some markets, influencing winter temperatures, rainfall patterns and energy demand in ways that are not always straightforward. So what does a super El Niño mean for commodities, power markets and energy systems, and where are the biggest risks likely to emerge? On today’s show, Kamala Schelling is joined by BloombergNEF’s weather analysts, Jess Hicks and Ryan Ward, to discuss some of their team’s notes, including “Weather and Commodities: Summer Outlook 2026 Marks El Niño” and “Atlantic Hurricane Outlook 2026: El Niño Lowers Count.”
Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com
Links to research notes from this episode:
Atlantic Hurricane Outlook 2026: El Niño Lowers Count - https://www.bnef.com/insights/39663
Weather and Commodities: Summer Outlook 2026 Marks El Niño - https://www.bnef.com/insights/39615
AI Models Show Edge in Tropical Cyclone Prediction - https://www.bnef.com/insights/39679
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Links in the notes 5
Transcript
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