Falling oil prices calm the markets further
NBP Natural Gas & GB Power Market Movement
UK energy prices fell on Monday boosted by improved UKCS supply, expected above average temperatures in the UK over the coming weeks and months and a falling oil price. Despite an unplanned outage and system tightness, prices continued to decline on Tuesday with an LNG cargo arrival offsetting the risk of a reduction in gas flows from Norway.
There was also a recovery in the GB Pound following the release of strong and positive market data for the month of February. A 1.28% day-on-day fall in the benchmark Brent crude price contributed too. Mid-week price falls prevailed on warmer weather and the return of the (Norwegian) Kollsnes gas processing plant.
Wholesale price falls that day were further compounded by weakness in the Oil price and continued strength in the GB Pound versus the Euro. Warmer weather remained the bearish driver of the day on both Thursday and Friday, along with a steady stream of scheduled LNG cargo arrivals to the UK.
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