NBP Natural Gas & GB Power Market Movement

Gas markets fell on Monday due to an oversupplied grid system and an improved weather outlook. On Tuesday, prices rose: gas Interconnection gas flows (from Belgium) wer ereduced. There was an outage along the Vesterled pipeline which reduced UK import needs from the Norway.

Medium-range gas storage was at a record low after the previousweek's cold weather, boosting price premiums associated with the gas needed that day. Oil gained 2% but the  main bullish drivers were the lingering cold weather, unseasonal high demand and lower gas imports. The upward trend continued Wednesday, with colder longer-term weather forecasts contributing.

However, another LNG tanker was scheduled to arrive in Britain, improving the overall LNG outlook. Oil approached $70, heading to a 6 week high as concerns grew over possible supply disruption in the Middle East and on a surprise decline in US stocks. Prices were less volatile on Thursday with an easing Oil market and the receipt of an LNG cargo to the UK. By Friday, curve markets closed higher overall, week-on-week, +1.67% & +0.86% for the April-18 annual electricity & gas products. 

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