Gas Prices Lower During The Week
NBP Natural Gas & GB Power Market Movement
Reduced demand from the household sector and falling prices in the Coal market was the main driving force behind lower gas prices during the week.
The UK gas network was boosted with output restarting at the North Morecambe gas field and gas contributions from the Norwegian gas shelf. The direction of the power market did not however with concerns lingering over French nuclear generation and diminished winds speeds towards the tail end of the week. Oil concluded the week 4.72% higher with the next OPEC drawing closer.
Outlook for Week Ahead
Consumption is forecasted higher week-on-week and is once again the main bullish driver for the prices next week. Lower UK gas production is expected due to a planned maintenance affecting St Fergus.
However, expected higher Norwegian deliveries via should help to limit the risk of reduced UK gas production next week. Coal looks like it could recede. Expert views remain polarising when it comes of the future direction of the Oil price. The OPEC meeting and the outcome of at the end of the month will drive the direction along with further announcements from the US that shale production will increase if the price of Oil rises.
Should other supply sources ramp up this should help to offset the risk of reduced UK gas. Price movements in the wider fuel spectrum will feed through.