Higher wind pushes prices down
NBP Natural Gas & GB Power Market Movement
UK energy prices firmed on Monday due to a rise in demand and reduced wind speeds. Coal prices closed higher by more than $1.00 per ton but a rising rig count in the U.S and a subsequent fall in the Oil price limited market gains.
On Tuesday, prices trended down thanks to higher Norwegian gas inputs and robust supply from UK gas production. An improved weather outlook added to the downward movement. News that the British Government must seek parliament approval to trigger Article 50 caused the Pound to fall against the Euro but the market failed to react given the bearishness from the shorter term markets.
On Wednesday, prices falls continued with higher wind power production lessening demand from power producers and a continued fall in the Coal price contributing. Forecasts for lower consumption at the end of the working week and in week commencing 30th January was the main bearish factor for all contracts on Thursday.
The outlook for storage withdrawals turned much lower given the expected reduction on demand. By Friday, all energy products settled lower week-on-week despite overall higher domestic demand.
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