Winter 16 contracts at nine-month high
Business Energy Market Brief - Aug16
Gains in commodity markets created a bullish trend in the GB energy market in July, with all gas and power contracts experiencing gains.
Seasonal gas prices gained 9.0% on average, despite a fall in oil prices. Winter 16 gas experienced the largest increase (of 10.2%) to average 44.7p/th, a new nine-month high. Summer 17 gas was up by 7.8% to 40.4p/th.
Centrica announced it had extended the closure of its Rough gas storage site, the UK’s largest, until spring 2017 following the discovery of an issue with one of its wells. This has caused concerns around storage supplies for the coming winter, and contributed to the large rises in the winter 16 contract. Day-ahead gas moved 0.5% higher to average 34.5p/th.