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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Annuals fall back from late-November surge

Wednesday 4th December 2019

Gas and power Annual prices have moved down in the last week or so, following signs of a recovery in the third week of November. A lot of the sentiment has been driven by the short-term markets, where Norwegian gas outages combined with colder weather and thus heating demand pushed prices higher. However, improved gas flows, the previously discussed levels ...

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Annuals continue downtrend

Monday 18th November 2019

The downturn of gas and power Annuals has continued through the first part of November. This is due to various factors, but the key driver is a combination of record gas storage and revised milder weather forecasts for the winter. In contrast to this, short-term markets have been more bullish – gas heating demand has increased due to the first real ...

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