Annuals hit record highs before retreating mid-month
Thursday 18th January 2018
Energy considerations have been significantly affected by the main oil index in the first fortnight of 2018. The Brent price briefly exceeded $70 for the first time since 2015, and this has driven other indices. Oil prices have since retracted as the reality of increased shale production in the States counters OPEC production cuts.
The weather has also been a driver as expected in January, with colder European forecasts pushing gas up. However, strong winds and milder weather have led to a retraction in gas and consequently power as the need for gas fired generation is reduced.
The Groningen gas field in the Netherlands also reappeared as a market driver as it has so many times over the last few years – an earthquake on 8th January (measuring a record 3.4 on the Richter Scale) has prompted calls for further reductions in gas extractions at Europe’s largest field. This has wide-ranging implications across the continent.