Warm weather melts prices
NBP Natural Gas & GB Power Market Movement
Expected warm weather, strong wind speeds and a heavily oversupplied UK gas network were the main bearish factors on Monday which lead to strong price falls across the price curve. On Tuesday markets did recover but not enough to cancel the benefit from Monday’s price falls.
Expectations of reduced wind speeds and weakness in the Sterling against the Euro (as the decision to trigger Article 50 at the end of March was agreed in parliament) were the main upside drivers that day. A stronger Oil price meant that prices rises remained in force mid-week. The impact of a rising Oil price, whilst there, was however capped by a recovery in the Sterling.
Come Thursday, the markets declined: available supply once again outstripped demand and the Oil price gradually moved from a position of strength to a position of weakness during the working day. The Sterling did likewise. By Friday, markets closed lower than the previous Friday with the April electricity and gas annual contracts falling 1.02% and 1.77% respectively.
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