Record wind generation from storms Ciara and Dennis

Tuesday 18th February 2020

The storms of the last fortnight have brought record energy output with the highest levels of UK wind generation recorded. This has seen short-term gas and power costs at very low levels.

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Travel and energy demand fall due to coronavirus

Wednesday 5th February 2020

The bearishness across energy markets shows little sign of slowing as we enter February. Annual power prices are at their lowest levels since May 2016, with various factors exerting negative pressure. As previously discussed, European gas storage levels remain well above normal for this time of the year. With strong LNG deliveries and a continuing mild winter, gas prices are ...

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High winds and mild weather weigh on short-term power

Friday 17th January 2020

Markets have returned to bearishness following the sharp upturn seen after the US attack on Qasem Soleimani at the beginning of the month. The muted response from Iran has been interpreted as a de-escalation, and Iran’s expected belligerence decreased further with the shooting down of the Ukrainian airline. Whilst Brent crude had surged in excess of $70 intraday, the ...

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Annual bearishness halted by oil surge

Monday 6th January 2020

The last fortnight of 2019 saw a downturn for gas and power Annuals, continuing the trend that started mid-December. The key driver here was the gas transit deal between Russia and Ukraine. Whilst this looked touch and go earlier in December, the 5-year deal agreed represents real energy security for Western Europe, and thus (in theory) less price volatility. Prices ...

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November bearishness continues into December

Wednesday 18th December 2019

The general downturn in energy seen in the second half of November has continued in December. Gas remains abundant, so electricity generation demand has been down. Another major factor in generation costs has been wind output, with a record 16GW produced at one point (44% of the UK mix) due to the latest Atlantic storm. Currency markets have also helped ...

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