Weekly Price Update Report - Week 7, 2018
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Energy Market ReportsWeekly Price Update Report - Week 7, 2018

Weekly Price Update Report - Week 7, 2018

Nathaniel Taylor

by Nathaniel Taylor 12 February 2018

Report Summary:

Rocky start to the week

week-on-week-changes

NBP Natural Gas & GB Power Market Movement

UK energy prices fell on Monday despite the strong increase in demand.  The UK gas network was oversupplied, boosted by strong storage withdrawals.  Brent crude attained $67s and the Pound gained. Coal moved sideways after two consecutive days of a strong drop in prices. 

On Tuesday, prices reduced further as the outlook for temperatures increasing slowly from Thursday provided bearishness. The 45-day weather forecast also confirmed an upward trend in temperatures towards March, indicating that the cold spell at the prevailing time may be the last one seen for the balance of winter. Oil remained in $67s.  Whilst overall demand growth is expected to remain strong, rising US crude output continued to undermine this commodity along with the US dollar strengthening.

Mid-week markets bucked the falling trend and rose with the cooler that day being the main bullish concern annulling the benefits of expected lower consumption for the next working day and oversupply on the grid.  Thursday saw prices ease once again as supply fears eased, due to the return of the Forties oil and gas pipeline.  Met. office forecasts confirmed that temperatures could reach as high as 7 degrees Celsius within day, which was up from lows of around zero earlier in the week. Oil attained $65s, a price point not seen since late Dec-2017. 

Further falls in this commodity came as US output continued to soar and North Sea crude flows restarted.  By Friday, the April-18 annual electricity and gas products closed lower week on week by 0.98% and 0.65% respectively.

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