Slump in power prices continues on warm, windy weather

Wednesday 20th February 2019

Both gas and power wholesale has continued to decline in the first part of February. This has mainly been driven by the short-term market. Temperatures have been significantly above average for the time of year, so domestic gas demand is down and storage levels are strong. There are also few gas supply issues, with abundant LNG deliveries and no notable ...

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Healthy supplies counter bullish effects of cold weather

Monday 4th February 2019

Wholesale prices have been in decline for the majority of the last fortnight. This is in spite of price pressures associated with the cold weather, with the UK experiencing the lowest temperatures of the season. In contrast to last winter, the cold spell has been accompanied by strong physical supplies – there have been few North Sea outages and LNG shipments ...

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Annuals continue general decline in spite of surge in oil

Thursday 17th January 2019

Gas and power Annuals have generally been declining through the first two weeks of the year, continuing the trend that started mid-December. However, a lot more volatility has crept in, prompted by changing weather patterns, with mild windy weather giving way to an Arctic blast across Europe.

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Power prices slump on declining oil and financial downturn

Friday 4th January 2019

The past fortnight has seen a general decline in energy markets. The big driver was oil, where the Brent index dramatically shed value on Christmas Eve, dipping below $50 within day. Whilst the index has somewhat recovered, it is indicative of a perceived slowing of the global economy and thus overall energy demand. Short-term markets have dropped on a mild ...

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Bearish Annuals turn bullish on short-term drivers

Monday 17th December 2018

Gas and power Annuals have dipped then turned upwards through the course of December. The month started in bearish territory, heavily influenced by the weakness of oil and the prolonged mild weather. However, as the weather cooled and OPEC+ agreed an oil production cut, so prices turned higher. Drivers were initially short-term, but this quickly fed through to Annuals. There ...

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