Cooler weather outlook boosts prices
NBP Natural Gas & GB Power Market Movement
Falling temperatures, higher system demand and a surge in the Oil price lifted UK energy wholesale prices on the first working day.
Prices continued to gain on Tuesday despite the gas network being oversupplied. An ongoing outage at the Dutch gas storage, Bergermeer, was extended which provided support, casting some doubt over the duration of the outage within the marketplace. Brent crude prices also continued to gain on confirmation of output cuts from OPEC and non-OPEC members.
However a strengthening GB Pound against the Euro helped to stem the rate of some of the price gains seen that day. Mid-week, contracts for the season ahead and beyond rose despite confirmation of rising US crude stocks and a firming U.S.
Dollar on news that the Federal Reserve raised interest rates. The direction of prices reversed on Thursday on oversupply and a stronger GB Pound, which helped to offset the impact of the within day recovery in the Oil price and the outlook for higher demand in week 19th December.
By Friday, overall, markets closed higher than the previous week, boosted further on the last working day by a much cooler weather outlook, expectations of reduced wind speeds, a weakening GB Pound and a continued bullish Oil market.
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