Warmer weather helps lower prices
NBP Natural Gas & GB Power Market Movement
Market prices fell week-on-week with a reduction in household usage and improved warmer temperatures being the main bearish drivers. Average temperatures in the UK were more than 6 degrees Celsius compared to circa 3 degrees in the previous week.
Adding to the easing sentiment was news that more LNG cargoes are likely to head to the UK for some of February and a step change improvement in LNG arrivals is expected in March now that maintenance has ended in Qatar and Algeria. Limiting some of the downside in the marketplace was a consecutive weakening of the GB Pound, which settled against the Euro at 1.1699 on Friday compared to 1.1735 the previous week.
Coal prices also rose during the week 2.13% on concerns that China may cut production in an attempt to curtail the supply glut. However, the benefit of improved supply and demand fundamentals outweighed.
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