Energy Prices Fall Further
NBP Natural Gas & GB Power Market Movement
Despite oil prices exceeding $55 per barrel, UK energy prices fell early in the week.
Average temperatures for the rest of the week were expected to reduce demand for gas overall and there were expectations of higher wind power production according to National Grid data.
The Sterling strengthened against the Euro on the resignation of the Italian Prime Minister. News that some of the nuclear reactors in France could restart also added some downward pressure and hovering doubts over whether OPEC production would actually address the issue of the current supply glut in the oil market.
Mid-week, markets closed higher following four days of consecutive price falls on an unplanned outage on the Norwegian gas shelf which left the gas network undersupplied and needing to balance. A weakness in the Pound against the Euro also contributed but markets went on to ease back on Thursday thanks to a recovery in the Pound, mild weather and expectations of higher wind speeds.
On Friday, markets regained on an undersupplied gas system, expectations of reduced wind power and Oil gained 0.80% ahead of the OPEC and non OPEC weekend meeting in Vienna..
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