Weekly Price Update Report - Week 3, 2018
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Energy Market ReportsWeekly Price Update Report - Week 3, 2018

Weekly Price Update Report - Week 3, 2018

Jamie Flanagan

by Jamie Flanagan 15 January 2018

Report Summary:

Strong gains within week


NBP Natural Gas & GB Power Market Movement

Markets opened the week bullish on expectations of rising demand but a stronger GB Pound limited gains with some contracts even settling lower at the end of the day on Monday.  All contracts rose on Tuesday as demand rose, boosted by lower wind and higher gas-for-power demand. Concerns that output would be cut from the Groningen gas field following an earth tremor on Monday also added strength.  Several earthquakes each year, a consequence of gas extraction, has caused damage to the local vicinity there. 

The oil price continued to rally supported by market expectations of a week-on-week fall in US stockpiles. Strong price gains were experienced mid-week: once again higher demand being the main adverse driver and lingering concerns over the Groningen gas field.

The GB Pound softened and the oil price continued to gain, effects of which filtered through across the entire price curve.   Gas markets opened the day higher on Thursday, but the power opened lower.  Higher consumption forecasts on a drop of the temperatures drove higher gas pricing for the UK and the Continent. The oil price remained bullish in $69s with a drop in US production and lower crude inventories supporting this commodity, likely a result of the extreme cold in large parts of North America which has led to some producers having to shutdown. By Friday, the April-18 annual electricity and gas products closed higher by 1.01% and 2.53% respectively.

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