Warm weather delays heating demand and lowers gas prices

Thursday 2nd November 2023

Following the Hamas attack in Israel and the subsequent response, prices surged as wider implications for energy security were considered. At the time of writing, the gas and power price spike has nearly reversed as strong generation fundamentals and warm weather dictate costs. A lot of the geopolitical risk that was built into pricing in relation to the Middle East …

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Prices slide as we enter October

Wednesday 4th October 2023

Prices have seen quite a sharp downturn as we enter the October 2023 energy year. October ’23 power ended trading on £104/MWh, so a dramatic reversal from the £400 peaks in August ’22 (and even further from the £700 October ’22 prices at that time). Similar falls have been seen for gas. The key driver for this is the de-risked …

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Front Annual loses 6% with calmer market conditions

Monday 18th September 2023

It has been a generally bearish fortnight across power and gas Annuals. In spite of all the concern relating to the Australian LNG strike action, prices have fallen. Short-term has been more robust, but Annuals have shed value. More benign weather conditions across the UK and the continent has seen much lower energy demand. At the same time, gas storage …

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Prices drop back as extreme continental temperatures ease

Friday 1st September 2023

It has been a much more benign couple of weeks across gas and power markets. The worries over Australian LNG strikes – whilst still very real – have been counterbalanced by the fullness of EU gas storage which is well ahead of schedule and de-risks a lot of winter pricing. We have seen dramatic downward shifts today in front-month prices …

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Gas spikes up, much like power

Wednesday 2nd August 2023

There has been a fair degree of volatility in the past fortnight across gas and power. The UK weather conditions (the non-summer) has given some short-term bearishness to prices – unseasonal, high wind output has provided a large volume of electricity generation, which of course decreases gas-fired demand. However, the continental heatwave has led to continued export of power (and …

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