Further price falls this week
NBP Natural Gas & GB Power Market Movement
UK energy prices opened down at the start of the week with a strong LNG send-out eliminating the risk of slightly reduced UK gas production and an outage at a Norwegian gas field. A series of production outages led to prices increases on Tuesday. Continued weakness in the Sterling against the Euro also contributed with renewed speculation and concerns on the UK's economy post-Brexit.
However, a bearish sentiment returned mid-week with less cooler weather severing domestic demand and above average temperatures forecasted for the week ahead (w/c 13th March). Wider consideration such U.S. oil inventory data showing higher-than-expected stockpiles, Saudi Arabia stating that it was too early to talk of extending OPEC cuts and the EIA predicting a much faster rise in U.S. oil production ensured strong price falls in the Oil market. Expectations of mild weather ensured the continued downward trend on Thursday.
Prices did regain on Friday but overall, and by the end of the week, prices settled mixed for electricity. Any week-on-week rises that did occur was not too stark in comparison.
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