Weekly Price Update Report - Week 38
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Energy Market ReportsWeekly Price Update Report - Week 38

Weekly Price Update Report - Week 38

Ian Mckenna

by Ian Mckenna 21 September 2017

Report Summary:

Norwegian gas flows extend gains


NBP Natural Gas & GB Power Market Movement

Markets rose on Monday despite oversupply and strong wind power. Bullish drivers such as reduced flows of Norwegian gas and expectations for higher  consumption during the week resulted price in gains.  Whilst the oil price dipped during the day, the settlement level ended slightly higher than the previous working day.  Markets recouped some of the gains on Tuesday despite consumption expected to remain high, Norwegian gas flows being further constrained and the oil price attaining $54s. 

Interconnector exports of UK gas were lower-than-expected, gas demand from the power generation sector was stable and the GB Pound gained strongly. 

The main factor for higher prices on Wednesday was the rising oil price, a consequence of the EIA  announcing it was seeing a reduction in the global excess of oil supplies.  The markets were mixed Thursday with contracts further out falling, tracking the falling coal price.  Nearer contracts gained however with continued unplanned outages on the Norwegian gas shelf and rising household consumption boosted by the much cooler weather.   Overall by Friday, annual energy products lost value week-on-week with the October-17 annual electricity and gas contracts closing lower by 1.66% and 2.48% respectively.

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