Weekly Price Update Report - Week 18, 2018
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Energy Market ReportsWeekly Price Update Report - Week 18, 2018

Weekly Price Update Report - Week 18, 2018

Ian Mckenna

by Ian Mckenna 01 May 2018

Report Summary:

LNG improved the outlook


NBP Natural Gas & GB Power Market Movement

On Monday, prices rose owing to forecasts of falling temperatures during the week. This drove the day ahead price higher and affected other contracts along the price curve. Limiting some of the upside was strong wind power generation.  The oil price was initially stable but recovered slightly during the day, closing 0.88% higher compared to the previous (working) day. Prices fell on Tuesday despite lower temperature forecasts for the end of the week, higher coal prices and low gas inventories. The main bearish driver today was that three LNG cargoes were expected to arrive to the UK which improved the outlook for this flexible supply source. The oil price remained firm boosted by OPEC-led production cuts, strong demand and the prospect of renewed US sanctions on Iran.

Markets gained on Wednesday, following news of an outage (with no expected return date or known impact) on the Norwegian gas shelf. Brent Crude attained low $73s before regaining intraday settling higher overall.  Market gains continued Thursday despite an oversupplied gas network and flows resuming after an outage at the St Fergus gas terminal.  Higher-than-expected consumption and lower-than-expected wind power were the main bullish factors that on market day.  By Friday’s close, the winter 18 electricity and gas contracts closed higher week-on-week, +3.00% and +3.39% respectively.

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