Weekly Price Update Report - Week 24
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Energy Market ReportsWeekly Price Update Report - Week 24

Weekly Price Update Report - Week 24

Nathaniel Taylor

by Nathaniel Taylor 13 June 2017

Report Summary:

UK power prices go negative on renewables


NBP Natural Gas & GB Power Market Movement

Monday’s market closed higher despite a well-supplied gas system. Norwegian flows were lower due to maintenance and LNG send out was also lower.  Prices trended down on Tuesday with the main bearish signal being oversupply and forecasts of higher wind generation. Brent crude also fell on concerns that rising tensions between Qatar and other Arab states could threaten current OPEC-led production cuts.

The GB Pound attained a 12-day high as investors bet on an outright Conservative party win on election day.  Coal prices rose on tighter global supply and decreasing stock level but the upside linked to this commodity was limited given the bearishness from the spot market and movements in currency.  There was mixed direction in prices on Wednesday but markets did end down day-day-day close lower. Demand was an estimated 11% below the seasonal norm, with demand forecasts sapped further with average temperatures being revised up from previous forecasts.

Bullishness returned on Thursday on undersupply and the need for gas storage withdrawals. Exports via the interconnector rose also.  Prices fell on Friday as concerns eased somewhat over Qatar's redirection of two LNG tankers (on Thursday). Higher Norwegian gas flows to the UK also pressured prices down.

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