Weekly Price Update Report - Week 8, 2018
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Energy Market ReportsWeekly Price Update Report - Week 8, 2018

Weekly Price Update Report - Week 8, 2018

Nathaniel Taylor

by Nathaniel Taylor 22 February 2018

Report Summary:

Cooler weather warms prices


NBP Natural Gas & GB Power Market Movement

Prices rose during the week on a colder weather outlook and rising consumption.  On Monday healthier supply helped to limit the extent of price gains.   Prices continued upwards on Tuesday with forecasts showing colder temperatures for the week ahead. The gas system remained oversupplied, with very healthy domestic gas production continuing. Peak wind generation was high. The full return of Flags was delayed which added to the bullish sentiment that day too.  Oil attained $62s but the benefit of this (comparably low) price-point was offset by a more bullish spot market.

Prices reduced on Wednesday with higher forecasted wind speeds leading to a fall in CCGT demand. Prices directions were more mixed on Thursday with some contracts up and some down: the near market was down as high imports from Belgium (IUK) and the Netherlands (BBL) resulted in oversupply However, demand for gas to heat homes and generate electricity rose and there was an unplanned outage at the FLAGS pipeline system. A recovery in the oil market kept other contracts above their previous day equivalents. By Friday, the annual April 2018 electricity and gas contracts closed higher week-on-week by 0.95% and 0.93% respectively.

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