Weekly Price Update Report - Week 41
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Energy Market ReportsWeekly Price Update Report - Week 41

Weekly Price Update Report - Week 41

Nathaniel Taylor

by Nathaniel Taylor 12 October 2017

Report Summary:

Colder weather increases demand

week-on-week-changes

NBP Natural Gas & GB Power Market Movement

Markets rose on Monday despite the oil price easing back 1.78% during the day.  Colder weather led to higher gas demand from both the domestic sector and the power generation sector.  LNG send-out levels at the South Hook terminal indicated that send out could be lower than previously expected in October. Strong demand spilled into Tuesday but limiting the impact of this was a reduction of gas flows through the Interconnector. Mid-week, market trends diverged: The Rough gas storage site started to withdraw gas at a maximum possible rate; consumption was lower-than-expected and the UK gas network was comfortably supplied. 

The oil price eased further and the GB Pound gained on food price data.  However, coal prices gained that day and uncertainty lingered over LNG supply for the month of October.  On the penultimate day, lower temperatures and a dip in wind power resulted in further price gains. UK and NCS gas production was fairly strong and this helped to contain the (upward) rate of change.  Saudi Arabia and Russia were expected to agree production cuts and an oilfield in Libya restarted after taking respite for a few days.  By Friday 6th October, the April -18 annual electricity and gas contracts closing higher by 2.36% and 2.97% respectively.

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