Prices soften over the week
NBP Natural Gas & GB Power Market Movement
Strong price falls were recorded on Tuesday with the Sterling gaining against the Euro following the release of data which showed that UK business activity grew at an increased rate again in November providing indications that economic growth remains solid despite ongoing uncertainty caused by Brexit.
Wider fuel prices, Oil and Coal, fell mostly owing to a stronger US dollar. Markets regained mid-week on weather-related concerns and following an extension of an outage at Rough, the UK’s largest gas storage sites. Oil also regained as API data showed a drop of 7.4 million barrels in U.S. crude supplies, a bigger than expected decline.
An expected rise in wind power and a drop in demand were the main signals for falling prices on the penultimate day, Thursday. On Friday, markets softened further on weather forecasts showing above seasonal temperatures for the week ahead and higher LNG send-out with the docking of one Qatari cargo at the South Hook LNG terminal. In other areas, overall, Coal traded down just over 11%. Annual prices ended the week down when compared to the previous week with prices falling on more working days than not.
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