Colder forecasts push power prices higher
Monday 19th November 2018
Gas and power prices have seen a degree of recovery over the last two weeks, following general bearishness through October. The main driver has been a change in weather forecasts, with the first prolonged cold spell due later this week. This will inevitably lead to increased heating demand following a period of unseasonably mild weather across Europe. Short-term gas is up, and has dragged gas and power Annuals with it.
Carbon has also seen a recovery, having fallen off over several weeks. At one point, carbon was up a third in value. At the same time, oil and coal continued to weaken (lower Chinese coal demand and increased US crude oil build), but these usual bellwethers of the global energy complex have had little sway on the direction of power and gas which have remained firmly in bull territory.